US Energy Companies Risk Losing $100 Bln if Anti-Russian Sanctions Bill Approved

Concerns are growing among major US oil and gas companies over the a new bill imposing news sanctions against Russia. Russian economist Vladislav Gink estimated that US energy companies risk losing billions of dollars due to sanctions.

According to The Wall Street Journal, energy companies such as Exxon Mobil and Chevron, as well as representatives of other US industries, expressed concerns that the new anti-Moscow restrictions could harm the interests of US companies if compared with the non-US entities that have no joint projects with Russian firms.

The newspaper added, citing Exxon lobbyists, that the company had provided  lawmakers with information about the potential negative impact of the proposed legislation on the interests of the entity.

According to Vladislav Ginko, economist and lecturer at the Russian Presidential Academy of National Economy and Public Administration, in a situation where anti-Russian sanctions have been put in their place, the White House is trapped between political and economic interests.

"[US President] Donald Trump understands that he is under siege. A certain foreign policy agenda is being imposed on him. But Trump has to decide on sanctions because these restrictions are an obstacle for his plan to make America great again," Ginko said in an interview with Radio Sputnik.

The economic section of his program presumes developing the oil and gas industry, which is hardly possible without cooperation with Russian companies.

"Last year, Russia topped Saudi Arabia, the world’s largest crude producer, in terms of daily output. This is why joint projects with Russia could serve US strategic interests in the energy sector," the economist pointed out.

He suggested that the possible losses of major American energy companies could be a solid argument in the consideration of new sanctions.

"Trump needs to recruit his willpower and make a decision. He should meet the representatives of US oil and gas companies and explain to them what is going on. The US needs cooperation with Russia and this is why those sanctions don’t make sense. The US risks losing billions. In the coming four years, losses may reach no less than $100 billion," Ginko concluded.

On June 15, the US Senate approved, by an overwhelming majority, an Iran sanctions bill, which included an amendment introducing new anti-Russia sanctions. The document stipulates a restriction of the maximum term of market funding of Russian banks and energy companies included in the sanctions list to 14 and 30 days, respectively.

In addition, Washington continues to oppose the implementation of the Nord Stream-2 gas pipeline project, citing the alleged adverse impact it exerts on the energy security of the European Union.

The bill still must be passed by the US House of Representatives and signed by the president to become a law.