Suppliers to Russian companies tread carefully because of sanctions
The sectoral technological sanctions, imposed by the USA and the EU against Russia in the oil industry, may hit the gas sector also. In some cases, oil and gas companies use the same equipment, and Gazprom has recognized that suppliers prefer to play safe. At the same time, in general, the market is in confusion: neither the Russian oil and gas companies, nor their Western partners understand how to work in conditions of the sanctions. Attempts to circumvent them are fraught with high fines, so the foreign partners are very careful.
Participants of the oil and gas industry still haven’t figured out how to work within the sanctions imposed against Russia, the conference "Sakhalin Oil and Gas-2014", which opened in Yuzhno-Sakhalinsk, showed. Speakers tried to comment on the matter in a very streamlined manner. So, the Sakhalin Governor ,Alexander Horoshavin and the Deputy Energy Minister, Kirill Molodtsov repeated that the sanctions wouldn’t affect already existing PSA projects, thereby made it clear that risk remained for the new ones. Mr. Molodtsov acknowledged that the analysis of the legal consequences hadn’t been completed and it would take time to understand exactly what equipment and what projects were concerned.