Russia’s energy sector is restrained by sanctions
Russia’s energy sector is threatening a number of international sanctions that would jeopardize major strategic projects and significantly slow the development of the industry. This, in turn, after 10 years can lead to a drop of oil. At the same time, countries such as Azerbaijan, Turkmenistan and Kazakhstan are taking steps to diversifying transit routes of oil, developing the European direction.
Russia is totally dependent on foreign companies such as Exxon Mobil, BP and Halliburton, because without Western high technology the country will never be able to fully extract its oil resources, estimated at $ 8.2 trillion. This writes Bloomberg.
This scenario threatens Russia in case of adopting by world countries a package of third stage sanctions that would extend restrictions not only on russian companies or individuals, but on the whole industry. This issue was raised on the eve by the U.S. Assistant Secretary of State Victoria Nuland. United States, according to her, is actively in contact with Europe over the development of new sanctions against Russia. “We are working on a series of sanctions in the energy sector, the banking sector, in the field of defense,” – said Nuland.
“Without foreign partners Russia really will have hard times”, – says the oil and gas analyst in russian Alfa Bank Alexander Kornilov, informs Gazeta.ru. “Russia needs foreign technology to develop those reserves, which are unconventional oil. Traditional oil reserves are depleted, and we are dealing with the natural decline of production in many fields”, – stated Kornilov.
“Russia has historically been rich on oil reserves and until the recent time did not arise the need for more high-tech-oriented development of unconventional reserves” – explains Kornilov the reason for Russian backwardness. Inventing high-tech domestic production is unlikely to work out. “It will take time, which is critical in this situation. Russia runs the risk of falling oil production at the beginning of the next decade “- says russian Alfa Bank’s oil and gas analyst. The experts also say that Asian technology can not become an alternative to Russia.