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BP frets over ‘strategic objectives in Russia’

British energy company BP said Tuesday its second quarter profits soared, but any additional sanctions could impact "strategic objectives in Russia." BP reported second quarter replacement cost profits, a measure that eliminates oil price volatility, at $3.2 billion, up 34 percent from the same period in 2013. BP Chief Executive Bob Dudley said in a statement cash flow during the second quarter was "robust." The company attributed its strong second quarter to upstream operations in the Gulf of Mexico and overhauls at its refinery in Whiting, Indiana. Elsewhere, the company said sanctions on the Russian energy sector, particularly oil company Rosneft, could impact business operations in Russia. "Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation," the company […]

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U.S., EU Ready New Sanctions as Russia Prepares Response

The U.S. and the European Union may move as soon as today to impose tougher sanctions on Russia as Vladimir Putin ’s government formulates its response to the growing international pressure. The sanctions target “key sectors” of Russia’s economy — finance, defense and energy — and are being imposed in the face of Putin “doubling down” in support of separatists battling Ukrainian troops, U.S. Deputy National Security Adviser Tony Blinken said yesterday. EU governments agreed yesterday to impose travel bans and asset freezes on Putin’s “cronies.” “The longer this goes on, there is the risk of further outrageous actions by the separatists or by Russia that deepen the international crisis,” Blinken said. “So there’s a need to take further action now to convince Russia to change course.” ‘Concrete Steps’ Russia hasn’t effectively put pressure on the separatists to force them to negotiate and hasn’t taken the “concrete steps” asked […]

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Europe leans on Ukrainian energy company

A European energy administration agency said Monday the Ukrainian government needs to examine its contractual relationship with Russian energy company Gazprom. The European Energy Secretariat sent a letter to Ukrainian Energy Minister Yuri Prodan calling for an assessment of the contract between Ukrainian energy company Naftogaz and Gazprom. Parts of the contract, including the take-or-pay clause requiring Naftogaz to pay for a pre-determined volume of gas, serves to "prevent, restrict and distort competition on the natural gas market in Ukraine and affect trade in natural gas within the [European] energy community," the secretariat said in a statement . Gazprom in June switched Naftogaz over to the new payment scheme because of $4.45 billion in overdue bills. Russia supplies about a quarter of the European Union’s gas needs, though most of those supplies run through the Soviet-era transit network in Ukraine. Debt disputes in 2006 and 2009 prompted Gazprom to […]

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EU edges to economic sanctions on Russia but narrows scope

The European Union reached outline agreement on Friday to impose the first economic sanctions on Russia over its behavior in Ukraine but scaled back their scope to exclude technology for the crucial gas sector. The sanctions on access to capital markets, arms and hi-tech goods are also likely to apply only to future contracts, leaving France free to go ahead with the controversial delivery of Mistral helicopter carriers being built for Russia. After months of hesitation, the 28-nation EU toughened its stance toward Moscow after last week’s downing of a Malaysian airliner, killing 298 people, in an area of eastern Ukraine held by Russian-backed separatists. But the narrowing of the proposed measures highlighted the difficulty of agreeing to tough sanctions among countries which have widely different economic interests and rely to varying degrees on Russian gas. After a discussion that lasted all day Thursday and part […]

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Russian execs fear lasting damage from plane crash

MOSCOW (AP) — Having for months dismissed Western sanctions on Russia as toothless, business leaders here are now afraid that the downing of the Malaysian jetliner will bring about an international isolation that will cause serious and lasting economic damage. Throughout the Ukrainian crisis, U.S. and European sanctions had mainly targeted a handful of individuals, sparing economic ties. Then last week the U.S. imposed penalties on some of Russia’s largest corporations. And when the airliner was shot down just a day later in Ukraine, allegedly by separatists with Moscow’s support, concern grew in Russia that the sanctions would only get worse as President Vladimir Putin shows little sign of cooperation. Reinforcing those concerns, the European Union said Friday it is planning newer, tougher penalties on businesses. "Over the past few months, there was a sense that Mr. Putin acted decisively, forcefully, and correctly, and that everybody else in the […]

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Canada sanctions Russian energy sector

Canadian Prime Minister announced new sanctions targeting the Russian energy sector in response to the Kremlin’s pressure on Ukraine. Harper announced sanctions against 10 separate Russian entities, including Russian independent gas company Novatek and Gazprombank, the financial arm of Russian gas giant Gazprom. The prime minister said the sanctions were meant as a response to Russia’s occupation of the Crimean region in Ukraine and its military action in eastern Ukraine. "The measures we are announcing include sanctions against a broad range of entities from Russia’s arms industry, as well as from its financial and energy sectors," he said Thursday. Novatek was included in a list of sanctioned entities outlined by the U.S. government in mid July. In a statement issued in response, Novatek said its financial situation is stable and cash flows are sufficient. Harper’s administration didn’t extend sanctions to Russian oil company Rosneft. Rosneft in […]

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Ukrainian gas situation ‘normal’

Slovakian gas transit company Eustream said Friday the state of operations through Ukraine were in line with its expectations. The company said it hasn’t seen any pressure reductions or gas volume decreases at a compressor station on the border with Ukraine. "Gas flow from Ukraine is in normal mode," it said in a statement . European countries get about a quarter of their gas needs met by Russia, though most of that gas runs through Ukrainian pipelines built during the Soviet era. Ongoing crises in Ukraine is therefore putting European energy security at risk. Last month, the European Investment Bank said it was lending $132 million to Polish natural gas transmission company Gaz-System for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine Eustream said Thursday it was proceeding with […]

Posted On : Published By : Tom Whipple
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Ukrainian gas situation 'normal'

Slovakian gas transit company Eustream said Friday the state of operations through Ukraine were in line with its expectations. The company said it hasn’t seen any pressure reductions or gas volume decreases at a compressor station on the border with Ukraine. "Gas flow from Ukraine is in normal mode," it said in a statement . European countries get about a quarter of their gas needs met by Russia, though most of that gas runs through Ukrainian pipelines built during the Soviet era. Ongoing crises in Ukraine is therefore putting European energy security at risk. Last month, the European Investment Bank said it was lending $132 million to Polish natural gas transmission company Gaz-System for the expansion of a pipeline that could bring gas, including domestically sourced liquefied natural gas, to the border of the Czech Republic, Slovakia and Ukraine Eustream said Thursday it was proceeding with […]

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Russia Steps Up Help for Rebels in Ukraine War

Rather than backing down after last week’s downing of a civilian passenger jet, Russia appears to be intervening more aggressively in the war in eastern Ukraine in what American and Ukrainian officials call a dangerous escalation that will almost certainly force more robust retaliation from the United States and Europe. Russia has increased its direct involvement in fighting between the Ukrainian military and separatist insurgents, moving more of its own troops to the border and preparing to arm the rebels with ever more potent weapons, including high-powered Tornado rocket launchers, American and Ukrainian officials said on Friday. The officials, citing satellite images and other military intelligence, said that Russia had positioned heavy weapons, including tanks and other combat vehicles, at several points along the border where there has been intense fighting. On Thursday, Russia unleashed artillery attacks on eastern Ukraine from Russian territory, officials in Washington […]

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Senate leaders want more Russian sanctions

In light of Russia’s stance on the crash of the Malaysia Airlines plane, three U.S. Senators said broader sanctions on Russia’s energy sector are warranted. U.S. Secretary of State John Kerry said there was a growing body of evidence to suggest Russia may be tied to the downing of Malaysia Airlines Flight 17 last week. The passenger jet crashed near the eastern Ukrainian border with Russia, an area of operations for pro-Russian separatists. U.S. Sens. Bob Menendez , D-N.J., chairman of the Senate Foreign Relations Committee, Dianne Feinstein , D-Calif., chairwoman of the Senate Select Committee on Intelligence and Carl Levin , D-Mich., chairman of the Senate Armed Services Committee called on President Barack Obama to take a tough stance on Russia in light of the tragedy. "We write to express our outrage over the wanton destruction of Malaysia Airlines Flight MH17, and to ask that you consider imposing […]

Posted On : Published By : Tom Whipple