World Economy

Sanctions Still Hurt Russia

Sanctions Still Hurt RussiaSanctions Still Hurt Russia

Since Russia’s annexation of Crimea in March, 2014, the US and EU have leveled sanctions against Russia several times, tightening restrictions on major Russian state banks and corporations, including blacklisting dozens of Russian officials and firms, including energy firms. Three major state oil firms have been targeted: Rosneft , Transneft and Gazprom Neft, the oil unit of gas giant Gazprom, Forbes reported. Russian banks and Gazprom’s ability to secure long term funding in US dollars were also blocked. The US and EU also banned exports of services and technology to Russian state oil firms engaged in Arctic and deep-water and unconventional oil and gas exploration and production. Sanctions have also hit long term Russian energy projects, particularly their ability to obtain funding. In late April, independent Russian energy companies Lukoil and Novatek , told attendees at the annual IHS CERAWeek energy conference in Houston, that they were feeling the sting of the sanctions. “We feel the impact of sanctions, but we need some time for Russia and the industry to adjust,” said Lukoil CEO and founder Vagit Alekperov.