BofA: Russia may lose $1 trillion because of sanctions

The Western sanctions on the access of Russian companies' to western technologies in the fuel and energy sector can lead to fall of oil production and loss of $27-65 billion budget revenues.

The industry won’t receive the $1 trillion investments and Rosneft will lose the main catalyst of its growth, the Vedomosti reports, referring to analysis of Bank of America Merill Lynch (BofA).

As the edition reminds, the US and EU sanctions against the Russian oil sector were introduced in late July, they limit the export of equipment for deep-sea drilling, production in the Arctic and shale oil to Russia.

Conventional oil and gas fields in Russia, which provide 90% of the current oil production in Russia, are at the stage of reduction: the use of more sophisticated technologies and equipment is required to maintain the production, BofA’s analysts explain. Cooperation with foreign companies is critical for the development of the Russian oil and gas industry, they warn.