Main page > Products > The fuel and energy complex of Russia - Series of analytical reports > Three years under sanctions: their influence on Russia’s fuel and energy sector

Three years under sanctions: their influence on Russia’s fuel and energy sector

Three years under sanctions: their influence on Russia’s fuel and energy sector

Time flies. It has been three years since spring 2014 when Crimea came back to Russia, which was practically immediately followed by anti-Russia sanctions. They affected directly the country’s oil and gas industry that is the main sector of the Russian economy. Sanctions have been in force for quite a while, and it is possible to analyze how Russia’s oil and gas sector has adjusted to sanctions, how fatal are losses of the sector, and how sanctions have influenced the resolve of foreign companies to work in Russia. 

The report elaborates on the following issues: 

  • The geography of production of Russian hydrocarbons on the background of restrictions caused by sanctions. Production results – the influence of sanctions on main upstream projects. The situation around greenfields and brownfields amid sanctions. Main oil and gas provinces in Russia in 2014 to 2017.  
  • Oil services in Russia: import substitution or cooperation? The oil services segment was the weakest point of the sector. Therefore, the import substitution program was aimed at this segment. However, in the end, the government acknowledged there was no reason to develop the whole range of domestic technologies. The paradox is that during the sanctions period a big number of JVs with Western partners has been established in the oil services segment. 
  • Major players in Russia’s FES amid financial sanctions. Where do companies get the money for their investment programs? 
  • Adventures of nonresidents in Russia. Foreign companies amid sanctions. Policies of American, European, Chinese, and Indian energy majors. 
  • What is next? Which strategic line will be more popular: staking on relatively soon removal of sanctions and unblocking of Russia-West relations, or relying on the domestic potential, investing in yet unavailable but quite expensive technologies (LNG, offshore, Arctic, and Bazhenov projects)?

Contents of the report:

Introduction 3
Chapter 1. Sanctions, oil and gas production in Russia in 2014-2016 5
Chapter 2. Oil production breakthrough in Eastern Siberia amid sanctions 9
Chapter 3. Western Siberia, Volga Area: Growth with or without Shale? 22
3.1. Yamal: Russia’s New Oil Production Centre 22
3.2. Oil Production in Tyumen Region in Conditions of Sanctions 24
3.3. HTTR Development in Western Siberia, Volga-Urals in Conditions of Sanctions 25
Chapter 4. Cessation of Arctic projects: influence of sanctions or price conjuncture? 37
Chapter 5. Russian Gas Market in Conditions of Sanctions 47
Chapter 6. Financial standing of Russian oil and gas companies amid sanctionsé 57
Chapter 7. Forecast of developments 71
Date of release: June 19, 2017

If you are interested to obtain please contact » Elena Kim

Other issues:
Bookmark and Share

Analytical series “The Fuel and Energy Complex of Russia”:

New OPEC+ Deal and Future of Oil Business in Russia
Gazprom on the background of external and internal challenges
Regulation of Oil and Gas Sector in 2019 and Prospects for 2020
Fiscal Policy on Oil and Gas Sector: Revised as Often as Wikipedia
The tax system in the oil and gas sector continues to undergo radical changes. The beginning of 2019 saw the introduction of a new tax regime: additional income tax. That experiment was supposed to start migration of the oil industry to an innovative principle of taxation: on profit, not revenue. It seemed that a new main road was found. In the same year, however, the Finance Ministry launched an overt offensive against AIT. The fear of loss of government revenue now is more powerful than the threat of causing oil production to collapse in the medium term because of a tax system that does not stimulate investment. The Finance Ministry would strongly prefer to speed up the tax manoeuvre completion that earns the state budget additional money. Oil and gas companies respond to this with individual lobbying, attempting to wangle special treatment for their projects.
Ukrainian Gas Hub: Climax at Hand
The “zero hour” comes in less than a month: the contracts for gas transit through Ukraine and for supplying Russian gas to the country terminate at 10 am on 1 January. Meanwhile, Gazprom and Naftogaz are very far from looking for a mutually acceptable solution. The entire European gas business is watching intently the negotiations between Russia and Ukraine. Everyone is waiting for a new “gas war”: the January 2009 events proved to be a serious test both to European consumers and to Gazprom as a supplier. Is there still a chance of agreement? If there is not, will Gazprom cope with its obligations to deliver gas to Europe? Is Russia bluffing as it assures that the new infrastructure and gas in underground storage facilities will enable it to get by without Ukrainian transit even as soon as this winter? What will happen to Ukraine itself at the beginning of 2020?

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

Rambler's Top100
About us | Products | Comments | Services | Books | Conferences | Our clients | Price list | Site map | Contacts
Consulting services, political risks assessment on the Fuel & Energy Industry, concern of pilitical and economic Elite within the Oil-and-Gas sector.
National Energy Security Fund © 2007