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Strong Crude Inventory Draws Keep Markets On Edge

Strong Crude Inventory Draws Keep Markets On Edge

Strong crude inventory draws this…

Global Energy Advisory 11th August 2017

Global Energy Advisory 11th August 2017

Uganda and Tanzania have agreed…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

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Russian Crimea Project Faces New EU Sanctions

Oil Spill

Deputy Russian Energy Minister Andrew Cherezov and three new Russian companies now face new sanctions from the European Union due to their involvement in the delivery of gas turbines to Crimea.

The additions contribute to the existing blacklist of 150 people and 37 firms subject to asset freezes and a travel ban to European countries.

“The decision of Brussels to include a number of Russian officials and companies as a retaliatory measure for alleged illegitimate supply of Siemens gas turbines to Crimea prompts deep regret,” according to a statement by the Russian Foreign Ministry.

The EU’s stance against Russian interference in Ukraine began in 2014 when Moscow led a campaign to annex Crimea. Russia is currently in the process of constructing new energy infrastructure in Crimea, but Western sanctions continue to derail the efforts.

The $1.3-billion project is to have two new high-tech plans in Crimea to ensure electricity supply to the residents who have been suffering power outages since the annexation. The plants have been partially built, but have been designed to operate with gas turbines made by a Siemens subsidiary.

However, Siemens—whose officials have always said that there were no plans to provide such turbines—risks violating the EU sanctions against Russia, which state that “goods and technology for the transport, telecommunications and energy sectors or the exploration of oil, gas and mineral resources may not be exported to Crimean companies or for use in Crimea.”

Related: Oil Prices Slip Despite Modest Draw In Crude Inventories

In April, Russian Energy Minister Alexander Novak told the Russian Parliament that “work is continuing despite problems related to the delivery of equipment from a Western company.”

“We are working on buying other equipment,” Novak added, without providing any additional details on its partner in corporate crime. The timeline for the construction of the power facility has been pushed back due to the sanctions, though the project has yet to be cancelled.

By Zainab Calcuttawala for Oilprice.com

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  • Naomi on August 07 2017 said:
    No surprise Russia cannot build an electric power plant. Russians farm with horses.
  • Brent Jatko on August 06 2017 said:
    Good. The West needs to stand for territorial integrity and human rights.

    Russia apparenty has little respect for either.
  • Naomi on August 05 2017 said:
    Crimea has no water, no food, no electricity, no gas, no heat, no tourists. Russia is moving in the same direction because invading your neighbors is bad karma. All of the former USSR states hate Russians and they outnumber Russians enough to fight the invasion.

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