Sanctions Hamper Development Of Gas Production Projects In Russia - Environment Ministry

Sanctions Hamper Development of Gas Production Projects in Russia - Environment Ministry

Western sanctions on Russian oil and gas companies are hindering the development of new gas production projects, including those on the shelf, the Russian Ministry of Natural Resources and Environment said in a report released on Friday.

MOSCOW (Pakistan Point News / Sputnik - 17th August, 2018) Western sanctions on Russian oil and gas companies are hindering the development of new gas production projects, including those on the shelf, the Russian Ministry of Natural Resources and Environment said in a report released on Friday.

"The sanctions against Russian oil and gas companies restricting the influx of foreign investments, new technologies and equipment into the branch are hindering development of new projects in Russia, especially those on the shelf and aimed at extraction of hard-to-recover reserves," the report said.

Between 2016 and 2017, no significant gas field was put into service, as the oil and gas companies focused on the development of active projects, according to the report.

The sanctions Washington imposed in 2015 have already presented a roadblock for work at the Yuzhno-Kirinskoye gas field, located near Sakhalin Island, the development of which has been delayed indefinitely.

Relations between Russia and the West deteriorated after 2014, when the Ukraine crisis erupted and Crimea decided to rejoin Russia after hold a referendum. Moscow has insisted that Crimeas referendum was held in line with international standards, but Western states refused to recognize the vote.

The situation prompted the European Union and the United States to impose anti-Russian sanctions, which were followed by retaliatory measures from Moscow.