Page 44 - RusRPTJul24

The new sanctions also further target Russia’s LNG projects in the Arctic region. Building on the previously-adopted sanctions against the gas company Novatek’s Arctic LNG-2 project, which reportedly led to a halt of production at the plant in April, the U.S. is sanctioning Novatek’s other LNG projects: Arctic LNG 1 and 3, Obsky LNG, and Murmansk LNG. It is also sanctioning Novatek’s LNG vessels, the builders of the Ust-Luga gas liquefaction terminal, and the suppliers of Rosneft’s Vostok Oil (another key project in Russia’s Arctic), among others. Additionally, sanctions were adopted against companies in the Koulstar group (a vertically integrated coal mining and export group), the Elga coal complex, and the Seligdar gold and tin mining group, which is active in Russia’s Far East.
The sanctions against Arctic energy projects may further delay the industrial development of Russia’s Arctic coastline. This has been one of the government’s main development priorities in recent years; just this year, the federal government is planning to spend 392 billion rubles ($4.4 billion) from Russia’s National Welfare Fund on the Ust-Luga port. In order to further diminish energy-related revenues, the EU is reportedly discussing sanctions against Sovkomflot, a shipping giant involved in the transit of Russian maritime oil, as well as several ships that transfer defense products and technologies to Russia. Also this week, Germany’s Uniper won a major arbitration suit against Russian state-owned Gazprom, which allows the German company to cancel its (dormant) long-term gas purchase contracts with the Russian firm.
The CBR unexpectedly changed the start time for the start of trading on the foreign exchange market on June 13, pushing back trading to 9.50 am, instead of the usual 6.50am. (see 7.0 FX section)
The United States has expanded sanctions against the Russian IT sector on June 12. Tightening was expected, but business is still not completely ready for it It banned the provision of IT consulting and design services in Russia, as well as the provision of technical support and cloud services for software in the field of management, design and production. The ban will affect all Russian individuals, regardless of industry and personal sanctions, and will come into force on September 12. Now suppliers of industrial and business software from the United States will have to obtain export licenses to supply their software or its updates to Russia. The press release says that the new sanctions are aimed at the Russian military-industrial complex and should not disrupt the work of civil society, for the protection of which two general licenses are provided, 25D and 6D.
Widened US sanctions against Russia to target semiconductor flow, Bloomberg reports. The U.S. will on June 12 announce a widening of sanctions against Russia aimed at cutting off the supply of semiconductors to Moscow's war industry, Bloomberg reported, citing people familiar with the move.
US sanctions pro-Russian Moldovan governor. The U.S. has imposed sanctions on Evghenia Gutul, the governor of Moldova's Gagauzia region, for her ties to pro-Russian oligarch and politician Ilan Shor, the U.S. Treasury announced on June 12.
44 RUSSIA Country Report July 2024 www.intellinews.com