Page 12 - Gi flipbook February 2018

NEWS | INTERNATIONAL

RUSSIA
UK turns to Russian project targeted

by sanctions for gas supply

BRITISH HOMES ARE TOTAL
being heated this year with
gas from a Russian project
targeted by US sanctions,
as the shutdown of a key
North Sea pipeline slashed
domestic output and
sent utilities and traders
scrambling for supplies.
The first tanker of
liquefied natural gas from
the Yamal LNG project
in Russia’s Arctic, which
was opened by President
Vladimir Putin last month,
made its way to the Isle
of Grain import terminal
in Kent as UK gas prices
soared, according to The
Financial Times.
The shipment of the
super-chilled cargo to the
UK, which was originally
expected to go to Asia, was Yamal LNG
cheered in the Kremlin,
where the Yamal LNG the West. Bringing in Russian energy companies to Chinese lenders for a
project had been held the tanker will highlight from finance or technology $12 billion loan. Novatek
up as evidence that it questions about the UK’s for certain projects, levied declined to comment.
can withstand western energy strategy and the after Moscow’s annexation Britain’s Department
sanctions. Moscow has security of supplies, as it of Crimea in 2014. of Business, Energy and
insisted Europe will remain follows the shutdown of a A person close to Russia’s Industrial Strategy (BEIS),
reliant on Russia for gas. three-decade-old pipeline, energy ministry said the which has argued that gas
The UK government cutting off 12 per cent of tanker delivery made supplies will still be ample
has taken a tough line on gas from the UK’s portion the UK’s decision to back this winter because of
Russian sanctions since of the North Sea and sanctions against Moscow the UK’s import capacity,
Moscow first intervened in sending prices to four-year “look like someone biting emphasised that 80 per cent
Ukraine nearly four years highs. The resulting price the hand that feeds him”. of the gas consumed in the
ago, and Prime Minister crisis has sparked fears of Although shipments of UK is domestic or bought
Theresa May has stepped potential shortages. Russian oil and gas are from Norway or Qatar.
up criticisms more recently, While it is not unusual not directly subject to BEIS said that it was up
accusing Moscow of for the UK to import small sanctions, Yamal was only to the market to decide
meddling in elections and amounts of Russian gas that able to start operations on what gas to import. The
attempting to “weaponise comes by pipeline through time and on budget after LNG cargo has been bought
information” to undermine other European countries, adapting its financing to US by the London-based
the arrival on 28 December curbs specifically designed trading arm of Malaysia’s
of the Christophe de to undermine new Russian Petronas, which did not
Margerie LNG tanker was energy projects. respond to requests for
the first delivery to arrive Novatek, which operates comment when approached
by ship, with the loading Yamal and was a target of by The Financial Times.
of the tanker personally US sanctions, was forced to “Whether this liquefied
overseen by Mr Putin. perform financial gymnastics natural gas shipment is
While UK and EU after the US Treasury cut it eventually consumed in the
Vladimir Putin sanctions do not directly off from western financing UK is down to the market,”
personally oversaw target Yamal LNG, they in 2014. It converted the BEIS said. “But we can
the shipment have imposed other $27 billion project’s funding only benefit from having a
sanctions that cut off into euros and turned diverse range of supplies.” ■

12

News.indd 7 18/01/2018 11:18