The Globe and Mail: Vermilion looks to Europe amid sanctions on Russia

Vermilion Energy Inc.’s Lorenzo Donadeo is bullish on Europe, as his company looks to unlikely countries such as France, the Netherlands and Ireland to help drive production growth.

Despite Europe’s image as a land of carbon taxes, fracking bans and green energy enthusiasm, Mr. Donadeo says it’s a good place for an independent Canadian oil company to do business. And now, the crisis in Ukraine is expected to keep upward pressure on natural gas prices on the continent, while encouraging governments in Western Europe to look for domestic supplies to help wean them off their dependence on Russian energy.

Last week’s downing of a Malaysian jetliner – with the death of 298 people – is certain to heighten and prolong the political crisis.

“It just reaffirms that we’re currently in an environment where Russia is becoming more and more aggressive,” Mr. Donadeo said in an interview. “And if you’re a European, you’re relying on Russia for 30 per cent of your gas and you have to look at how you are going to find alternatives to that. And having someone like Vermilion that is active and investing is a good thing for them.”
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