EU sanctions threaten Yamal LNG project

European Union proposed sanctions against Russia targeting areas of access to capital markets, defence, dual-use goods and sensitive technologies threaten the Yamal LNG project run by Novatek.

If enforced, sanctions would delay major energy projects, especially the LNG market reports Reuters. Restricting access to piping for the build of pipelines or drilling pipes, floating drilling platforms and cranes was under consideration by the EU, a step that would most likely delay energy projects.

Technip of France, which won the engineering, procurement and construction contract for Yamal LNG already warned about the risks of such actions that would interrupt income flows from the project.

Reuters also reports that specialist technology used in the Arctic North is mostly provided by Western partners.

LNG World News Staff, July 28, 2014; Image: Novatek