EU sanctions BACKFIRE as Putin holds Western companies hostage in Russian oil projects | Science | New

Since Vladimir Poutine ordered Russian forces to invade Ukraine on February 24, Western powers including the United Kingdom, the United States and EU joined forces to impose harsh sanctions on Moscow. But now the Kremlin has escalated the standoff by banning investors from supposedly hostile countries from selling shares in major energy projects and banks until the end of the year.

Putin has retaliated against sanctions from Western countries and allies like Japan, imposing roadblocks on Western companies trying to leave Russia, even seizing their assets in some cases.

The Russian leader yesterday signed and issued an executive order immediately barring investors from countries that backed sanctions against Russia from selling their assets in a range of different partnerships.

These include Production Sharing Agreements (PSAs), banks, strategic entities, companies producing energy equipment, as well as in other projects, coal and nickel oil and gas production .

According to the decree, Putin could authorize certain exit deals by issuing a special waiver, and the government and central bank would have to prepare a list of banks for the Kremlin’s approval.

This decree is a blow because it prevents foreign investors in almost all major financial and energy projects from selling their stakes, including the Sakhalin-1 oil and gas project.

On Thursday, Rosneft, a Russian state-owned oil company, accused U.S. giant Exxon Mobil of slumping production at the Sakhalin-1 oil fields, after the company announced it would transfer its 30-year stake. % “to another party”.

Rosneft noted that since May 6, no tankers have left the De Kastri sea terminal in the Far East oil projects.

He also added that for the past few months Sakhalin-1 has produced practically no oil.

READ MORE: Ofgem slammed ‘inhumane’ plan to increase energy bills every 3 months

Even over the past month, Moscow has tightened its grip on gas entering Europe, with many fearing a complete cutoff by this winter.

Earlier this year, Putin issued an order requiring “unfriendly” countries to pay for gas in rubles set up by a Russian bank.

Russia has currently cut gas supplies to Poland, Bulgaria, Finland, Denmark and the Netherlands for refusing to pay in rubles.

More recently, Russia cut off supplies to Latvia for allegedly breaching a contract with Russian gas giant Gazprom.



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