New Sanctions Show More Teeth
BMI View : EU sanctions on technology exports to Russia will only affect its long-term oil production potential, having less impact on short-term oil and gas production. Sanctions against Russian banks would have a larger impact on Russia's highly-leveraged energy firms, stymieing long-term production potential of both oil and gas. We maintain our forecast for oil production, but have downgraded our medium-term gas production outlook to reflect project delays due to that difficulty in accessing capital.
Sanctions On The Oil Industry
The EU has specifically targeted the development of new oil resources with its ban on the export of deepwater and shale fracturing technologies. The US joined in to block the exports of, 'specific goods and technologies to Russia' that target the, 'long-term development' of its oil resources. Given that shale oil and offshore resources will be the new drivers of Russian oil production growth, the sanctioned items by the US are likely to be similar to the EU's.
|Being Hit From The Financial Side|
|Gazprom - Outstanding Russian Bank Borrowings By Currency (LHC) & By Bank (RHC), As Of Dec 31 2013|