US Bans Providing Goods, Services for Arctic Offshore Projects With Russia

The Treasury Department restricted any US support of Russian exploration or production for deepwater, Arctic offshore, or shale projects except for financial services.

WASHINGTON (Sputnik) — The United States has banned providing goods, services or technology for projects with Russia related to deepwater, arctic offshore or shale exploration or production, the Treasury Department announced in a directive on Tuesday.

"The Director of the Office of Foreign Assets Control has determined, in consultation with the Department of State, that the following activities by a US person or within the United States are prohibited… the provision, exportation, or reexportation, directly or indirectly, of goods, services (except for financial services), or technology in support of exploration or production for deepwater, Arctic offshore, or shale projects," the release said.

Russia is currently investing billions in Arctic development. Recently, Russia’s state-run oil company Rosneft announced that it plans to invest an equivalent of almost $2.5 billion in shelf oil exploration in the country’s Far East and off its eastern Arctic shore.

Russian Prime Minister Dmitry Medvedev said in August that the government is preparing to allocate $2.7 billion on the development of the Arctic by 2025, which includes among other things the development of the Northern Sea Route as well as the oil and gas industry in the region.