Russia's gas exports under threat due to US sanctions

Gas exports from Russia are facing serious problems due to US sanctions imposed in February, which prohibit the supply of any gas turbines and components to Russia. The critical dependence of Russian gas megaprojects, including the Power of Siberia and the Turkish Stream, on Western technologies and the inability to quickly replace them may lead to a reduction in gas exports to Russia’s remaining major consumers – China and Turkey. Problems with the maintenance of existing gas pipelines and the implementation of future projects were admitted by market participants in a conversation with the Russian newspaper Kommersant.

The publication notes that until February 2023, American components entered the Russian market, despite diplomatic disagreements and the sanctions war. However, with the new package of sanctions, this flow has stopped. At the same time, the success of the commissioning and operation of Russia's largest export megaprojects - the Power of Siberia and Turkish Stream gas pipelines, which use the technologies of the American company Baker Hughes, hinges on these American components.

In the February package, Washington introduced a ban not only on direct deliveries of turbines, but also on indirect, including re-export. Now if a foreign company subsequently transfers turbines or components for them to Russian citizens or Russian legal entities will fall under secondary sanctions. Ekaterina Makeeva, Partner and Head of the Russian law firm A-PRO which specializes in sanctions locicies, notes that the February sanctions introduce a preventive ban on the supply of such equipment and components, and it will be almost impossible to obtain permission for their supply.

Read More: https://uawire.org/russia-s-gas-exports-under-threat-due-to-us-sanctions


Shutting down Russia's major oil projects. Thank you President Biden!!!