Page 13 - FSU OGM Week 11 2021

FSUOGM NEWS IN BRIEF FSUOGM

RUSSIA name entities involved in the project that EASTERN EUROPE
are eligible for sanctions. Identification of
Ministry: Russia fulfills new targets is going on now, and should be Minsk and Russia set to
completed before the next report in May,
OPEC+ deal by 100.7% in officials told Politico. redirect Belarusian oil
“We are always looking at pipeline
February activity that would be sanctionable, so if products to Russian ports
we see activity that meets that threshold
Russia fulfilled the OPEC+ oil production we are prepared to follow the law,” State Minsk is apparently keeping the promise
cut agreement by 100.7% in February, Department spokesperson Ned Price said. given by the country’s embattled self-
Deputy Energy Minister Pavel Sorokin told Alice Weidel, leader of the Alternative appointed leader, Alexander Lukashenko, to
reporters on March 16. for Germany party in the German redirect the rail transit of Belarusian goods
“At the same time, Russia, as a member parliament Bundestag, told PRIME that the away from the Lithuanian and Latvian ports
of the voluntary OPEC+ agreement, at Nord Stream-2 is necessary for the country. over sanctions imposed by the two Baltic
the beginning of the year continued to “Germany has its own energy interests. states following the brutal suppression
dutifully fulfill its obligations to regulate It is important that our country does not of protests in the wake of the contested
production, increasing the reduction in oil become dependent in a small number of outcome of the presidential election last
production compared to the same period energy suppliers. That is why conclusion of August.
of last year due to lower demand caused the Nord Stream-2 project is a necessity. It Belarus and Russia signed an agreement
by the coronavirus pandemic. At the same is also understandable that the U.S. has its to start shipments of Belarusian oil products
time, the implementation of the OPEC+ own interests. Nevertheless, the sanction through the Russian port in Ust Luga in
agreement by Russia in February 2021 policy hurts both sides,” she said. the Gulf of Finland and the first deliveries
was maintained at a high level of 100.7%,” The Nord Stream-2 project envisages under the agreement were made on March
Sorokin said. construction of two lines of a natural gas 7. This is a worrying trend for Vilnius and
pipeline with an annual capacity of up Riga, as in 2020 Belarusian cargo accounted
to 55bn cubic meters, running from the for around 30% of loading volumes in
US authorities in tough Russian shore to Germany under the Baltic Lithuania’s port of Klaipeda, and around
20% in Latvia’s port of Ventspils.
Sea. Russian gas giant Gazprom builds the
place over N Stream-2 pipeline together with Germany’s Uniper national railway companies are also set
In addition, the Lithuanian and Latvian
and Wintershall Dea, Royal Dutch Shell,
sanctions Austria’s OMV, and France’s Engie. to lose significant shares of revenue,
particularly if Belarus also halts the transit
The administration of US President Joe of other products, most notably fertiliser.
Biden is still working on new sanctions for Technical studies of Soyuz However, the overall economic impact
Russia’s Nord Stream-2 natural gas pipeline, would be limited (less than 0.1% of GDP).
but is now in a tough spot, because it Vostok pipeline postponed For Belarus, the shipment of oil and
simultaneously wants to improve relations other goods through a much more distant
with Germany that supports the pipeline, to Q3 Russian port is more costly compared
Politico newswire reported on March 13 to Klaipeda or Ventspils; however, the
quoting unnamed officials. A technical and economic substantiation difference is likely subsidised by Moscow.
“The diplomatic situation is delicate, of the Soyuz Vostok pipeline designed to
officials said. The administration wants ship Russian gas from Sila Sibiri 2 to China
to impede the project — Biden has called across Mongolia is postponed to July– Eni, Novatek set to start
it ‘a bad deal for Europe’ — but it also September from January–March, Mongolian
wants to strengthen the US relationship newswire Montsame reported on March 11. drilling off Montenegro
with Germany, which has been lobbying "The technical feasibility studies of
for the pipeline’s construction to continue construction of the pipeline should be Italian oil company Eni, with its Russian
unabated,” Politico reported. finished until the end of the third quarter of partner Novatek, is gearing up to start
“We’re between a rock and a hard place,” this year. In this context, the sides agreed to drilling operations offshore Montenegro.
a senior administrative official said, as optimize activity of a specially established The country's Hydrocarbons
quoted by Politico. joint company," the newswire reported. Administration said Monday that the jack-
The administration is working on Export capacity of Soyuz Vostok can up drilling rig Topaz Driller had arrived at
additional sanctions against companies exceed the capacity of Sila Sibiri by more the offshore drilling location around 7 pm
connected to the pipeline project. The than 30% at 50bn cubic meters per year. local time Monday, after a five-day trip from
authority is required by law to report to Malta where the final preparations for the
the Congress every 90 days, and it has to upcoming drilling were made.

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