Unpublished conference/Abstract (Scientific congresses and symposiums)
EU's sanctions against Russia: main consequences on the ban on trading oil technology and oil services
Sisu, Madalina
2015 • (nearly 80 % of the current oil production is produced from mature Siberian deposits ), which would lead to a decline of revenues generated by oil industry and further to a decline of Russia’s state budget’s revenues; the further necessity to tap into Russia’s two sovereign wealth funds not only to back the oil companies affected by financial restrictions, but also to finance further budget deficits. There will also be significant geopolitical consequences, as in parallel with it its penetration of Asian growing energy markets, Russia will accelerate its eastward turn for cooperation in energy, technology and financial sectors; at the same time, offsetting the oil industry’s loss of revenues will require, from Russian side, maintaining its European gas market-share and good relations with its European customers.
EU's sanctions against Russia: main consequences on the ban on trading oil technology and oil services
Publication date :
27 April 2015
Event name :
(nearly 80 % of the current oil production is produced from mature Siberian deposits ), which would lead to a decline of revenues generated by oil industry and further to a decline of Russia’s state budget’s revenues; the further necessity to tap into Russia’s two sovereign wealth funds not only to back the oil companies affected by financial restrictions, but also to finance further budget deficits. There will also be significant geopolitical consequences, as in parallel with it its penetration of Asian growing energy markets, Russia will accelerate its eastward turn for cooperation in energy, technology and financial sectors; at the same time, offsetting the oil industry’s loss of revenues will require, from Russian side, maintaining its European gas market-share and good relations with its European customers.
Event organizer :
Université Saint Louis, ULB, University of Gent, Univeristé de Liège, UCL, Madariaga College of Europe
Event place :
Brussels, Belgium
Event date :
27-28 April 2015
By request :
Yes
Audience :
International
References of the abstract :
Since March 2014, in response to the Ukrainian crisis, the European Union, United States and their partners imposed
several rounds of economic sanctions against Russia. Stage II and III of EU’s sanctions, represented by two Council
Regulations -833/2014 and 960/2014-include strengthen restrictions directly impacting Russian energy industry. The
European companies are prohibited from trading equipment, technologies and services for use in specific Russian oil
projects whereas several Russian financial institutions and energy companies, mostly state-owned, are subject to EU’s
capital market restrictions. The paper aims to analyse the main consequences of the aforementioned ban of oil technology and oil services. It
identifies as short and medium term consequences: the halting or the slowing down of important projects developed
by Russian and Western oil companies regarding the exploitation of “hard-to-recover” oil fields; the replacing of the
Western technology of oil drilling under the Arctic, deep water and shale and also of the oil services technology with
Russian technology or imported technology; the likelihood of not meeting the 2030’s targets for Russia’s oil output (nearly 80 % of the current oil production is produced from mature Siberian deposits ), which would lead to a decline
of revenues generated by oil industry and further to a decline of Russia’s state budget’s revenues; the further necessity
to tap into Russia’s two sovereign wealth funds not only to back the oil companies affected by financial restrictions,
but also to finance further budget deficits. There will also be significant geopolitical consequences, as in parallel with
it its penetration of Asian growing energy markets, Russia will accelerate its eastward turn for cooperation in energy,
technology and financial sectors; at the same time, offsetting the oil industry’s loss of revenues will require, from Russian side, maintaining its European gas market-share and good relations with its European customers.
