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Gazprom expects no changes to key projects from new US sanctions

17 August 2017
Consumers
energynomics

Gazprom said on Aug. 14 that new U.S. sanctions against Moscow would not result in the Russian gas exporter having to make changes to key projects, although they could cause delays. Several provisions of the sanctions law signed by U.S. President Donald Trump earlier this month target Russia’s energy sector, which produces much of its foreign income, with new limits on U.S. investment in Russian companies, according to Reuters.

In July, Gazprom said the sanctions might delay some giant gas projects, including Nord Stream 2, Turkish Stream gas pipelines and deepwater Arctic offshore or shale projects. “For the time being [sanctions] are not cause for changing the strategic direction of business or adjusting the list of key Gazprom projects,” the state-owned company said in statement.

Previously, the company said that new U.S. sanctions against Moscow may delay some of Gazprom’s projects, including Nord Stream 2 and Turkish Stream gas pipelines. “The risk of the United States imposing sanctions… may result in delays, or otherwise impair or prevent the completion of the projects by the group,” Gazprom said in a prospectus for an upcoming Eurobond issue.

“The group’s export pipeline projects (including Nord Stream 2 and Turkish Stream) and deepwater, Arctic offshore or shale projects that have the potential to produce oil in the Russian Federation or elsewhere in the world may face difficulties”, it added.

US sanctions imposed against Russia over its annexation of Crimea are to remain, President Donald Trump said last week, quoted by the BBC.

Mr Trump tweeted that it would be premature to consider any relaxation “until the Ukrainian and Syrian problems are solved”.

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