Reuters: Russian gas pipelines to go ahead despite U.S. sanctions
MOSCOW/BRUSSELS (Reuters) - New U.S. sanctions will make it harder for Russia to build two gas export pipelines to Europe but the projects are unlikely to be stopped.
U.S. President Donald Trump has reluctantly signed into law further sanctions on Russia but some of the measures are discretionary and most White House watchers believe he will not take action against Russia's energy infrastructure.
This would allow Gazprom's two big pipeline projects to go ahead, although at a higher price and with some delays.
The Kremlin, dependent on oil and gas revenues, sees the pipelines to Germany and Turkey - Nord Stream 2 and TurkStream - as crucial to increasing its market share in Europe.
It also fears that Western partners - needed to develop the deepwater, shale and Arctic gas deposits that will fill the pipelines - will be scared off by sanctions.
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Update: Warning of US sanctions ‘disaster’ for Russia energy projects (Financial Times)
WNU editor: The Russian media narrative is that these sanctions will not seriously impact Russia, and the Russian stock market is taking the cue .... Russian Markets Shrug Off New U.S. Sanctions (Bloomberg). The EU is hoping that consultations will save these energy projects .... EU bets on US 'consultations' to save Russia pipeline (EU Observer). What's my take .... I read the bill, and these sanctions hint that heavy penalties will entail if the law is violated .... as a result the consequences are clear .... no U.S. or U.S. affiliated company or even a non-U.S. energy company that has business interests in the U.S. is going to touch any energy project with Russia right now. In short .... these sanctions have just killed current and future EU-Russian energy projects. Once this realisation hits home, I expect the reaction from Moscow to be beyond severe, and the reaction from the EU that is dependent on these energy projects to move forward will be even more blunt.
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