US sanctions raise concerns for foreign investors
LONDON, England
US sanctions targeting the president of Russia’s largest oil company could complicate the operations of Western oil companies with important investments in Russia, such as BP and Exxon.
The sanctions target only Igor Sechin, the president of Rosneft, and not the company itself. That means BP, Exxon and others will be able to continue to work with Rosneft, one of the world’s biggest oil companies, to explore for and produce oil and gas… for now.
Analysts are worried that the sanctions by the US against Sechin are a prelude to tougher ones against Rosneft. That could force Western oil companies to abandon or suspend their partnerships and some very ambitious oil exploration plans.
“(Sechin) perhaps may not be able to go shopping in Paris in the foreseeable future, but that is not the same thing as penalising the actual company,” says Pavel Molchanov, an energy analyst at Raymond James. “That could be the next step, though.”
Russian President Vladimir Putin issued a warning late yesterday that Western companies could eventually risk being shut out of Russia’s energy sector.
Putin said he saw no reason for Russia to take retaliatory steps now against the US and European Union, as he said the Russian government has proposed.