United States revises its economic sanctions regime for Russia

The US treasury department published an amended version of one of its sanction directives on October 31. The amendment concerns the ban of providing goods, services and technologies to certain Russian companies (including Rosneft and Gazprom) for projects to explore or produce oil in deepwater, Arctic offshore and shale deposits. The ban earlier only applied to oil projects in Russian areas, but now will cover any oil venture launched after January 28, 2018 in which the Russian firms subject to this measure hold at least a one-third stake or majority of voting shares.

In September, the US tightened financial sector sanctions on certain Russian firms shortening further maturities of allowed financing.

The US treasury department recently also released a list of entities related to the defence and intelligence sectors of the Russian government as required by the Countering American Adversaries through Sanctions Act approved in August. Further sanctions are not imposed for the listed entities at the moment, but possible additional measures will be announced separately. Some of the listed entities are already subject to existing sanctions. The list includes a total of 39 entities, including aerospace, arms-makers and shipbuilding companies, as well as the Federal Security Service (FSB).

Media reports claim that Rosneft recently decided to postpone exploration and development of an offshore deposit in the Black Sea, due in part to the impacts of Western sanctions.