Industry Reckons With Russian Sanctions Risk

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Global energy firms are racing to understand how they might need to adjust their operations to comply with potential new Western sanctions on Russia if it invades Ukraine. They are cautioning policymakers that it may be difficult to target Russia’s vital energy sector without hurting its global customers, particularly Europe. Predicting all of the impacts is impossible. The actual restrictions depend on the type of sanctions levied, how quickly they are brought into force, and the availability of waivers. The US is expected to chiefly target finance — which has implications for the energy industry — and the defense and technology sectors, although experts warn energy is on the table if events take a turn for the worst. Sanctions of specific individuals can make signing contracts impossible. "We continue to urge policymakers to consider the unintended consequences that sanctions can have on US business interests abroad and to ensure that they are as targeted as possible to limit those consequences," a spokesperson for industry trade group the American Petroleum Institute said. Companies are not simply exposed through their sales of Russian oil and gas. Many of the Western majors also sell specialty chemicals including refining catalysts into Russia’s energy sector.

Sanctions, Military Conflict, Corporate Strategy , Majors
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