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    Russian Oil Industry Must Adapt to Sanctions - Lukoil President

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    Western Sanctions Against Russia (737)
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    Russia’s oil industry needs to adapt in order to mitigate the impact of Western sanctions, but there is hope the sanctions will be rolled back soon, Lukoil President Vagit Alekperov stated at Monday’s IHS CERAWeek gathering.

    HOUSTON (Sputnik) — The Lukoil President explained that the Western sanctions are two-fold and seek on the one hand they to restrict cooperation with Russia, and on the other to downgrade sovereign rating and prevent access to investment funding.

    "Of course, we are feeling the impact of sanctions, but we need some time for Russian oil industry to adapt," Alekperov said.

    Alekperov noted that the Russian oil industry has been in international business for 25 years, but must adjust to the fact that significant part of the equipment it uses is produced abroad.

    "Large part of the equipment that we use is produced outside Russia, it takes time to localize it," he said.

    "It [sovereign rating] has been downgraded and that means that access to investment is difficult," he said.

    Alekperov stressed that although Russia, although living through difficult time, will overcome the difficulties in particular because of efforts made by the oil and gas industry.

    "The [oil and gas] industry today provides perspectives for the other industries of Russia," he said.

    Moreover, Alekperov argued there is hope the Western sanctions will not sustain for too long.

    "We understand that the reason for the sanctions [the conflict in Eastern Ukraine] is being addressed," he explained. “The political dialogue about the future of Eastern Ukraine, hopefully, will resolve in new agreements, and hopefully we will be the reversal of the sanctions.”

    Lukoil is one of the world's biggest vertically integrated companies for production of crude oil and gas, and for their refining into petroleum products and petrochemicals, according to the company's website.

    Topic:
    Western Sanctions Against Russia (737)

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