Page 6 - GLNG Week 42 2021

GLNG COMMENTARY GLNG

EU takes aim at Russia’s

Arctic oil and gas wealth

The EU wants a more active role in the Arctic, and Russia could

see this as an encroachment into its domestic affairs

POLICY THE EU has proposed a new Arctic strategy of oil and gas from Arctic fields in Russia and
which, if implemented, would prevent member Norway.
WHAT: states from acquiring oil and gas from the Rus- “To this end, the Commission shall work
The EU has proposed sian Arctic. While Moscow has downplayed the with partners towards a multilateral legal obli-
banning Arctic oil and gas impact of this move, it could undermine efforts gation not to allow any further hydrocarbon
purchases. to exploit trillions of dollars of oil and gas in Rus- reserve development in the Arctic or contiguous
sia’s far north, putting it on a political collision regions, nor to purchase such hydrocarbons if
WHY: course with Brussels. they were to be produced.”
The move could hit The European Commission is seeking to Going further, the EC’s hope is that it can
Russia hardest. expand the EU’s role in addressing climate convince all members of the Arctic Council to
change and other environmental issues. Its support a ban on Arctic development. Besides
WHAT NEXT: proposal published on October 13 reflects this Russia and its EU members, the council also
A ban is unlikely to be effort, although the bloc currently has limited comprises Canada, Iceland, Norway and the
implemented anytime influence in the Arctic. It is not a member of the US. Getting all of these nations to cease Arctic
soon, although it Arctic Council, even though three of its mem- drilling would be a considerable undertaking.
demonstrates the extent ber states – Denmark, Finland and Sweden The EU ban on Arctic oil and gas purchases is
of EU ambitions on – are. The Arctic Council is chaired by Russia, a more likely prospect, although it will need the
climate change. and Moscow may see the EC’s strategy as an support of the European Council and the Euro-
encroachment on its sphere of influence. pean Parliament to become a reality, and this is
“The EU is committed to ensuring that oil, far from assured.
coal and gas stay in the ground, including in the
Arctic regions,” the EC said, while conceding Russian impact
that the EU already imports significant volumes Speaking on October 13, Russian President

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