Page 10 - NorthAmOil Week 28 2022

NorthAmOil POLICY NorthAmOil

Canadian sanctions exemption allows

return of Nord Stream 1 turbines

CANADA A sanctions exemption issued by the Canadian will undoubtedly appeal to our European col-
government to enable the return of a Siemens leagues that their approach must be reassessed.
turbine to Russia’s Nord Stream pipeline will last Because if countries do not follow decisions they
for up to two years from now, making possible have agreed about sanctions, how can we talk
the import and re-export of a further five tur- about solidarity?”
bines to the project, Canada’s Global and Mail The European Commission issued a state-
reported on July 12. ment saying that the return of the equipment
However, Russian state-owned gas behemoth did not violate the sanctions regime.
Gazprom poured cold water on hopes that the
compressor equipment would be returned to Germany faces an energy crisis
Russia that would allow it to increase gas flows Government officials told the Globe and Mail on
to Europe on July 13, saying it had not received July 12 that Global Affairs Canada had granted
any document allowing for the re-import of the Siemens an exemption under Canada’s Rus-
equipment. sia sanctions for two years. One of the officials
“Gazprom does not possess any docu- noted, though, that Canada would be able to
ments that would enable Siemens to get the revoke the exemption at any time.
gas turbine engine for the Portovaya CS out of Germany is currently on energy crisis “alert”
Canada, where that engine is currently under- status, the middle of the EU’s three-tier warning
going repairs. In these circumstances, it appears system, and is actively preparing for a possible
impossible to reach an objective conclusion on halt to gas deliveries from Russia as it scrambles
further developments regarding the safe oper- to refill gas storage tanks ahead of winter.
ation of the Portovaya CS, a facility of critical Russia reduced flows of gas to Europe by
importance to the Nord Stream gas pipeline,” 60% through the Nord Stream 1 gas pipeline
Gazprom said in a statement. last month, citing technical difficulties as a result
Canada provided the exemption as a result of of Siemens’ failure to return the turbine that had
pressure from Germany, as Russia had said that been sent off for repairs. This prompted Ger-
Nord Stream could not resume full operations many and several other European countries to
until the turbine had been returned. However, complain of cuts in their contractual Russian
the arrangement was not previously disclosed to gas flows. The pipeline is offline anyway now for
be so extensive. scheduled annual maintenance, which Gazprom
Kyiv reacted angerly to the announcement has said will last until July 21.
that the equipment would be exempted, claim- The turbine in question is currently stranded
ing the move breaks sanctions on Russia. in Montreal as a result of sanctions. According
“The sanctions forbid the transfer of any to the Moscow-based Kommersant newspaper,
equipment related to gas,” Ukraine’s energy min- even with the sanction’s exemption now in place,
istry source said, reported Reuters. the unit will not get shipped to Europe until July
“If, God forbid, this decision is approved, we 14. It will be transported first to Germany, and

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