Radio Free Asia: Western Sanctions on Russia May Crimp China Gas Deal

Western sanctions on Russia could stall its plans to export natural gas to China, energy analysts say.

Sectoral sanctions imposed by the United States and the European Union over the Ukraine crisis have specifically targeted equipment for Russian oil projects and exploration, reflecting concerns about EU reliance on Russian gas.

But some spillover seems likely in the gas sector, which uses some of the same technologies, materials and services as oil development.

Despite the effort to exempt gas, the restrictions "could lead to complications because in many cases oil and gas are produced with much of the same equipment and from the same locations," The New York Times reported on July 30.

Both the U.S. and EU sanctions focus on offshore oil exploration and production, arctic projects and oil extraction from shale. But the overlap with equipment or technology needed for gas development may be difficult to define.

"The big question is going to be where they draw the line," said Michael Levi, senior fellow for energy and environment at the Council on Foreign Relations in New York. "I don't know how they're going to do that. I think that's really to be determined," he said.

Any additional hurdles for Russia could complicate already difficult efforts to develop East Siberian resources for gas exports to China. MORE