New Sanctions on Russia Threaten Activities in Russian Arctic, Say Experts
New American sanctions on Russia create further uncertainties for market participants, with analysts suggesting widespread consequences following sanctions against Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft. According to several experts, the ban on Western firms from cooperating with Russian companies will put on hold projects in the Russian Arctic, also decreasing the probability of any shale development in the country.
“These companies will bear the brunt of the confrontation. Moscow could commit to helping them, but the consequences will remain severe,” an analyst wrote to Natural Gas Europe.
Coherently, Russia’s President Vladimir Putin met with the permanent members of the Security Council and discussed the potential backlashes on Moscow and Kiev of the current arm-wrestling.
‘An exchange of views took place on the results of contacts between representatives of Russia, the European Union and Ukraine regarding the potentially negative consequences for the Russian and Ukrainian economies following the entry into force of the Association Agreement between Ukraine and the EU,’ reads the note released by the Kremlin on Monday.
Meanwhile, Ukraine is moving closer to Europe, working to fulfil the provisions of the Agreement.
“The Government will immediately start to fulfil all the provisions of the Agreement just after it has been ratified by the Verkhovna Rada of Ukraine on September 16,” Prime Minister of Ukraine Arseniy Yatsenyuk commented in a separate press release.
Brussels is equally taking measures to strengthen its ties with Kiev, with the Dutch government sending more people to Kharkiv and the European Commission unveiling a new plan.
‘Commissioner for European Neighbourhood Policy Štefan Füle and Prime Minister of Ukraine Arseniy Yatsenyuk signed a new programme to support civil society in Ukraine. The new programme, worth €10 million, is designed to enhance the role of civil society in promoting and monitoring democratic reforms and inclusive socio-economic development in Ukraine,’ the Commission wrote on Monday.
On Friday, the EU imposed new sanctions as well. The European sanctions are not as extensive as American ones.
RUSSIAN REACTION:
On Monday, Novatek announced the launch of the third stage of the Samburgskoye gas condensate field developed by SeverEnergia, a joint venture between Novatek and GazpromNeft.
'The launch of the third stage, which exceeds two (2) bcm of natural gas per annum, will enable the field to achieve peak production capacity of approximately 7 bcm of natural gas and more than 900 thousand tons of gas condensate per annum,' reads another communiqué.
In this sense, according to Novatek, the parts continue "to successfully implement" their development plan at SeverEnergia joint venture.