In the wake of continuous pressure exerted by Razom We Stand, the week beginning September 11, 2023, witnessed encouraging developments from both the US State Department and the EU Commission in their pursuit of imposing further sanctions on Russian oil and gas.
US State and Treasure Department
On Thursday, the US State and Treasury Departments announced a fresh wave of sanctions against Russia. These sanctions specifically target Russian companies involved in evading existing sanctions, along with those operating within the country's energy sector, all aimed at further weakening the Russian economy.
Significantly, these sanctions also encompassed various entities in Georgia, the United Arab Emirates, and Turkey that were found to be aiding Russia's war efforts. Approximately half of the newly imposed sanctions by the State Department were directed towards the Russian energy industry, a pivotal source of funding for the nation. Among those affected were engineering firms and construction companies associated with the development of new energy infrastructure.
One notable inclusion among the newly sanctioned entities was a recently established UAE company that provided engineering and technology support to Russia's Arctic liquefied natural gas project. Additionally, several Russian companies engaged in the project's development were also targeted.
This highlights Putin's ardent desire for the Arctic LNG 2 project to expand liquefied natural gas production, thus positioning Russia as a more influential player in the energy market. Putin himself visited the LNG site in Russia's northern region in July, affirming its positive impact on the country's overall economy.
The sanctions also extended to Novatek's Murmansk and Kamchatka LNG transhipment terminals, which are on the verge of commencing operations alongside Arctic LNG 2 by year-end.
EU Commission
Razom We Stand's ongoing campaign to ban large LNG imports from Russia within the EU has yielded positive results this week. The EU Energy Commissioner Kadri Simson told Reuters “We can and we must reduce Russian LNG exports to phase them out completely, I want the parliament and the council to agree for the gas package to include robust provisions to allow member states individually to restrict, where security of supply allows it, the access to Russian LNG exports.”
In collaboration with Bankwatch and the Ukrainian Civil Society Organisation Ecoaction, Razom We Stand recently submitted preliminary comments to the European Parliament, advocating for the integration of the Partnership Principle and environmental conditionality within the Ukraine Facility legislation.
As part of its broader review of the Multiannual Financial Framework (MFF), the European Commission has put forward a draft proposal for establishing the Ukraine Facility. This entity is envisioned as a medium-term single instrument that brings together the bilateral support provided by the Union to Ukraine, ensuring coordination and efficiency.
Designed to function as a dedicated financing instrument, the Ukraine Facility is set to provide cohesive, predictable, and flexible support for Ukraine during the 2024-2027 period, addressing the unprecedented challenges of supporting a country in a state of war.
Civil society groups, including Razom We Stand, emphasize the need for the Facility to prioritise public participation and environmental sustainability, aiming to foster green reconstruction and bring Ukraine closer to EU membership.
We are pleased to announce that on September 15, 2023, the EU Parliament officially considered these proposed amendments.
While these developments represent a significant step in the right direction, they still fall considerably short of imposing a permanent embargo on Russian fossil fuels and an immediate cessation of all investments in Russian oil and gas companies.
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