The UK and EU are preparing to hit new Russian gas projects with sanctions if the Kremlin orders an attack on Ukraine.
This is reported by the Financial Times.
According to the news agency, the plans – being drawn up with US support – would severely curtail financing and technology transfer for new gas projects.
The sanctions being considered reflect concern over a potential Russian invasion of Ukraine following Moscow’s deployment of more than 100,000 troops near the border with its neighbour. The measures would form part of a wider package of potential economic measures, with the severity to be adjusted depending on the scale of any Russian offensive, people close to the discussions said.
Targeting new Russian gas developments is seen as a way of striking at the country’s main industry while potentially avoiding some of the short-term pain that would be felt in western countries if energy flows were immediately disrupted.
US and European officials have declined to publish a list of potential sanctions. Measures targeting Russia’s financial sector and the ability of Russian banks to deal in dollars are also under discussion.
The publication adds that Europe’s willingness to target Russia’s vast hydrocarbons industry could affect European companies including BP, Total and Shell, which invest in the Russian gas sector. Russia is one of the world’s largest producers of oil and gas, but its energy sector relies on joint ventures with foreign companies as well as international technology and expertise.
It should be noted that cooperation between the UK and EU on Russia sanctions is a sign of willingness to collaborate on foreign and defence policy.
Earlier we wrote that the West threatened the Kremlin with unprecedented sanctions in case of further invasion of Ukraine. It is noted that the leaders of Great Britain and other leading NATO countries agreed that the international community should not tolerate any actions that would undermine Ukrainian sovereignty.