Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

US Treasury says sanctions are biting Russian upstream oil, natural gas investment

Bunker Fuel | Oil | Crude Oil | Refined Products | Shipping | Marine Fuels

"The secret of politics? Make a good treaty with Russia."

Oil

Platts Market Data – Oil

NGL | Oil | Crude Oil | LPG | Oil Risk | Petrochemicals

Platts University New York

Oil

UK's Forties pipeline shutdown adds to North Sea disruption

US Treasury says sanctions are biting Russian upstream oil, natural gas investment

Washington DC — US sanctions are limiting important investment in Russia's upstream needed for expanding the country's oil and gas production capacity, a Treasury Department official is expected to tell Congress later Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Sigal Mandelker, under secretary for terrorism and financial intelligence, will tell the Senate Banking Committee that US sanctions imposed after Russia's military intervention in Ukraine in 2014 have had measurable impacts, according to her prepared testimony.

Foreign direct investment into Russia has fallen 5% since 2013, with direct investment from the US falling 80%. The sanctions have blocked hundreds of millions of dollars in Russian assets in the United States, and state-owned banks and other entities likely face higher financing costs because of Treasury's ban on debt purchases, she said in the prepared remarks.

"Russia is taking note of these impacts," Mandelker said.

Mandelker will tell the committee that while Russia's "malign activities" continue, Moscow's "adventurism" has been checked by the knowledge that the US can bring more economic pain through additional sanctions.

The Trump administration has sanctioned 217 Russian-related individuals and entities, including oil company Surgutneftegaz and power company EuroSibEnergo, since January 2017. Targets include heads of major state-owned banks and energy firms, and some of Putin's closest associates.

Mandelker will say that Treasury shares Congress' resolve to counter Russian malign activity.

"As companies across the globe work to distance themselves from sanctioned Russian persons, our actions are imposing an unprecedented level of financial pressure on those supporting the Kremlin's malign agenda and on key sectors of the Russian economy," she said in the prepared remarks.

Russia's natural resources ministry said in a report Friday that US sanctions have limited new gas project development in the country, especially from offshore and at hard-to-extract fields.

Russian producers had previously reported coping well with US sanctions that limited access to Western financing and technology for new Arctic, deepwater and shale projects. The measures have forced some international drillers out of joint ventures in those areas, stalling or delaying progress in their development.

"In 2016-17, not a single significant field has been launched, gas-producing companies have focused their attention on working at projects that had already been launched," the ministry said.

--Meghan Gordon, meghan.gordon@spglobal.com

--Edited by Daniel Lalor, daniel.lalor@spglobal.com