Analysts do not rule out the suspension of gas exports to Europe from Russia over US sanctions
Effective August 2 in force the law on US sanctions against Russia significantly increases uncertainty for European gas market participants.
Write about it, analysts of international rating Agency S&P. In their opinion, the law may create difficulties in relation to the construction of Russian gas pipelines hamper maintenance of existing pipelines, including passing through the territory of Ukraine, and also to cause a temporary cessation of supply in Europe, reports RBC.
The main reason for this uncertainty is the lack of direct sanctions against Russian pipeline projects to supply energy and considerable freedom of action in matters of their application in each specific case, according to a survey.
The threat of sanctions can have a negative impact on investor interest in the acquisition of debt or shares of Russian companies, and cause delays in investment decisions. In addition, the sanctions may restrict access to technologies or services necessary to complete the construction of the pipeline “Nord stream-2” and “Turkish stream”. This, in turn, threatens to delay deliveries or increase costs in the search for alternative technological solutions and can reduce the profitability of projects.
Video settings the Kremlin reacted to the law to strengthen sanctions against Russia
3 Aug, 08:38
If the construction of new pipelines will be completed by 2019 in accordance with the schedule, the supply of gas from Russia to Europe will depend on the outcome of negotiations on the agreement with Ukraine on gas transit, which can be difficult, argue analysts.
According to analysts, we cannot exclude the suspension of gas supplies during the talks, as it was ten years ago. Sanctions can also create operational problems on existing pipelines, unless their proper maintenance. The analysts say, calling such a scenario is unlikely.
Russia in response to new US sanctions will reduce the use of the dollar
Also the baseline scenario, S&P does not foresee major disruptions of Russian gas exports to Europe. Existing underground storage facilities and the availability of alternative routes will provide to Gazprom the flexibility to supply in the EU.
Videotron has signed the law on strengthening of sanctions against Russia
2 Aug, 20:32
Recall, trump has signed the law on sanctions against Russia. Even before the approval of the sanctions, Russian President Vladimir Putin said the US new sanctions, which the Congress approved in a Russian intervention in the choice of the President of the United States in 2016, as well as the annexation of Crimea and aggression in Syria.
On July 27, for a document that increases economic pressure on Moscow – voted by 98 U.S. senators, against – only two. Earlier, as convincingly supported sanctions in the house of representatives.
In response to the July 28, 2017, Russia announced that from 1 August discontinues the use of the U.S. Embassy in Russia of all warehouse premises in Moscow and cottages in the Serebryany Bor and called on the US to reduce the number of employees depodesta on the Russian territories to 455.