Gazprom expects no changes to key energy projects from new US sanctions

MOSCOW-Reuters

Gazprom said on Aug. 14 that new U.S. sanctions against Moscow would not result in the Russian gas exporter having to make changes to key projects, although they could cause delays.

Several provisions of the sanctions law signed by U.S. President Donald Trump earlier this month target Russia’s energy sector, which produces much of its foreign income, with new limits on U.S. investment in Russian companies.

Last month Gazprom said the sanctions might delay some giant gas projects, including Nord Stream 2, Turkish Stream gas pipelines and deep-water, Arctic offshore or shale projects.

“For the time being (sanctions) are not cause for changing the strategic direction of business or adjusting the list of key Gazprom projects”, the state-owned company said in statement.

Western firms that have invested in Nord Stream 2 - Wintershall and Uniper of Germany, Austria’s OMV, Anglo-Dutch Shell, and France’s Engie - say it is too early to judge the impact of sanctions.

For now, they are standing by their pledge of up to 950 million euros ($1.13 billion) each to finance the 1,225 km (760 mile) Nord Stream 2.

Despite Trump’s desire to promote U.S. liquefied natural gas exports to Europe that would compete with the Russian gas, he said he did not want the sanctions to get in the way of efforts to resolve the conflict in Ukraine.