19:50 GMT +324 May 2019
Listen Live
    A worker of Russian gas and oil giant Gazprom works on February 18, 2015 in Novoprtovskoye oil and gas condensates oilfield at Cape Kamenny in the Gulf of Ob shore line in the south-east of a peninsular in the Yamalo-Nenets Autonomous District, 250 km north of the town of Nadym, northern Russia

    US Oracle Informs Russian Oil, Gas Companies About Joining Sanctions - Reports

    © AFP 2019 / ANDREY GOLOVANOV
    US
    Get short URL
    1006

    MOSCOW (Sputnik) - The US IT giant Oracle informed Russian oil and gas companies that it had joined Washington's elevated sanction policy, and thus would toughen conditions for the provision of products and services to its Russian clients, Russian media reported on Thursday.

    In a letter dated January 12 and obtained by the Kommersant newspaper, Oracle warned Russian partners about its compliance with the new US sanctions demands targeting the oil and gas sector of the Russian economy.

    The sanctions ban providing, exporting, or re-exporting goods, services, or technologies that support deepwater and Arctic offshore exploration and drilling, as well as shale projects involving one of the companies included by the Office of Foreign Assets Control (OFAC) in Directive 4 under Executive Order 13662.

    READ MORE: Anti-Russia Sanctions Have No Impact on Rosneft's Oil, Gas Shelf Projects

    A source within one of the Russian oil companies told Kommersant that the restrictions may result in significant difficulties for the Russian oil and gas sector as it is still highly dependent on foreign software.

    On October 31, the US Department of the Treasury expanded the restrictions saying that all the projects with at least 33-percent participation of the sanctioned companies must face sanctions.

    In August, President Donald Trump has signed a bill to slap new sanctions on Russia which targeted Russia's defense, intelligence, mining, shipping and railway industries and restricted dealings with Russian banks and energy companies. Russian Foreign Minister Sergei Lavrov called the law "outrageous" and stressed that new sanctions against Russia is a "shameless" attempt of the United States to promote its economic interests in Europe.

    Germany's top diplomat Sigmar Gabriel also criticized anti-Russian sanctions, as according to the minister they can lead to dire consequences for energy supplies in Germany since sanctions affect Russian pipelines.

    READ MORE: US Sanctions Bill: How Trump Administration Misread Russia

    Directive 4 was introduced in 2014 after the eruption of the Ukrainian crisis and Crimea's decision to rejoin Russia. The document targets 283 companies, including Gazprom, Rosneft, LUKoil, and Surgutneftegaz. The restrictions affect projects launched after January 29 or earlier contracts that are amended, renewed or prolonged.

    Related:

    Russian Foreign Intelligence Chief Explained His Visit to US Despite Sanctions
    No Guarantees US Not to Introduce New Sanctions 'Tomorrow' - Russian Envoy
    US May Sanction Turkey Following Purchase of Russian S-400 Systems - Reports
    Huntsman Sees Nothing New in US 'Kremlin Report' on Sanctions Against Russia
    Russia Will Retaliate Against US Over Expansion of Sanctions - Foreign Ministry
    Russia to Reciprocate After US Decision to Expand Sanctions Under Magnitsky Act
    Tags:
    Oil, software, gas, sanctions, Oracle, United States, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik