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Russia will never again be seen as a reliable supplier of energy, Geoffrey R. Pyatt, U.S. Assistant Secretary of State for Energy Resources, said on Friday.
During talks in Japan this week and in Europe in the past weeks, “In all those conversations, it’s very clear to me that Russia is never again going to be viewed as a reliable energy supplier,” Pyatt said on a special briefing today, ahead of a U.S.-Japan Energy Security Dialogue.
“So the question is how best to phase out our exposure to Russian supplies,” the U.S. official added.
The U.S. and its allies and G7 partners are working “jointly to deny Russia future energy revenues and to target in particular investments and projects which are aimed at growing Russia’s future energy revenue,” Pyatt said on the briefing.
This is why the U.S. targeted the Arctic LNG 2 project in Russia by sanctioning last month Russian companies providing construction and engineering services to the project, the U.S. official said.
The sanctions do not apply to the project or to its shareholders, which include Japanese firms. The designations of Russian services companies could delay the Arctic LNG 2 project, developed by Russian gas firm Novatek, which was on track to begin first production later this year.
Pyatt also said that the price cap on Russian oil “is working to meet its intended goals and we are committed to maintaining an intensive level of dialogue with Japan and our other G7 partners to ensure that that continues to be the case.”
The comments from the U.S. energy official came a day after the U.S. Department of the Treasury imposed on Thursday sanctions on two entities and identified as blocked property two vessels that used Price Cap Coalition service providers while carrying Russian crude oil above the $60 a barrel price cap.
Thursday’s sanction move – the first time the U.S. has imposed sanctions for a breach of the price cap – sent oil prices rallying by nearly 4% early on Friday.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.