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U.S. sanctions: Russia's Arctic oil feels the chill

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Russia's vast Arctic oil business is facing major disruption from U.S. sanctions on its tankers and depots, stranding crude supplies previously snapped up by Asian buyers in storage, according to three sources familiar with its logistics.
The article from Reuters discusses how U.S. sanctions are impacting Russia's Arctic oil projects, particularly the Vostok Oil project led by Rosneft. These sanctions, which were expanded in December 2023, target Russia's future energy production capabilities by restricting access to Western technology and services crucial for Arctic oil extraction. The sanctions have led to delays and increased costs for projects like Vostok Oil, which aims to produce 2 million barrels per day by 2033. The measures are part of a broader strategy to limit Russia's oil revenue, which funds its military activities, especially in light of the ongoing conflict in Ukraine. The sanctions have also affected other Russian oil companies like Gazprom Neft and Novatek, complicating their operations in the harsh Arctic environment where specialized equipment and expertise are necessary.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/russias-arctic-oil-feels-chill-us-sanctions-2025-01-14/ ]


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