Sanctions Placed On Russian Oil Field

Gazprom

By MarEx 2015-08-07 16:55:41

The U.S. has extended its Russian sanctions to the Yuzhno-Kirinskoye Field in the Sea of Okhotsk. The field is one of Gazprom PJSC’s largest. In a statement released by the Federal Register, the U.S. stated that the field contains substantial reserves of oil and gas.

The Yuzhno-Kirinskoye Field is located off the far eastern coast of Siberia and was discovered by Gazprom in 2010, but it isn't scheduled to go into production until 2018.

By adding Yuzhno-Kirinskoye to the sanctions it will bar the export of U.S. technologies to the field. Companies or American citizens will be required to obtain permission from the Department of Commerce. Technology trade restrictions essentially outlaw the export of U.S. products for Russian deepwater and Arctic oil exploration and production.

The U.S. sanctions have long targeted Russia’s energy, defense and banking sectors. In March, the U.S. stated that no sanctions will be lifted as long as Russia’s annexation of Crimea remains in place.

Moscow has criticized the latest sanctions saying it will further damage bilateral relations between the two nations. Russia also said these latest sanctions by the U.S. will have little effect on its economy.