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Anti-Russian sanctions

Russian government to support state and private energy firms amid sanctions

The sectoral sanctions imposed by the United States and the European Union against Russia bar Russian state-owned energy companies and banks from raising long-term financing on western markets

Russia's Deputy Energy Minister Kirill Molodtsov ITAR-TASS/Sergei Fadeichev

Russia's Deputy Energy Minister Kirill Molodtsov

© ITAR-TASS/Sergei Fadeichev

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Foreign oil-service companies continue to operate in Russia so far

MOSCOW, September 29. /ITAR-TASS/. The Russian government will provide support to both state and private oil and gas firms amid Western sanctions, Deputy Energy Minister Kirill Molodtsov said on Monday.

State support will also be provided to foreign firms implementing important investment projects jointly with Russian state companies, the deputy minister said.

“As for the projects with foreign participation, I don’t see any problems. If these are state companies implementing national projects as part of the development of the oil and gas sector and if there are foreign stakes in such projects, this does not mean that the government cannot support state companies,” the deputy energy minister said. “The state will look for methods to support all companies,” including Russia’s largest independent crude producer Lukoil, he added.

Media reports earlier cited Molodtsov as saying that Lukoil was seeking state support in the form of access to unallocated hydrocarbon deposits amid Western sanctions.

Russia’s Energy Ministry is elaborating necessary instruments jointly with the Natural Resources, Economic Development and Finance Ministries to support oil companies, including the provision of preferences for the development of oil fields, Molodtsov said at the time.

“Now that companies have been hit by sanctions, they may apply to the state for support, if such support is needed,” he said.

“Some companies have already approached the government with a request for support while some others will possibly make such requests soon. The Energy Ministry is working jointly with the Economic Development and Finance Ministries on a set of necessary instruments, including from the standpoint of preferences for existing deposits. At the same time, the state is guided by the principles of impartiality and equal access in allocating resources,” the deputy energy minister said.

The sectoral sanctions imposed by the United States and the European Union against Russia bar Russian state-owned energy companies and banks from raising long-term financing on western markets.

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