Reception in the world
The Special Envoy of the Prime Minister of the United Kingdom Catherine Meyer supported the initiative of Ukrainian companies on the inadmissibility of cooperation with Russia in the energy sector. [5]
On 29 April 2022, during a full-scale Russian invasion of Ukraine, hundreds of people picketed Engie's office as part of Stop Bloody Energy. [6] The protesters wanted to end gas contracts with Russia and stop giving money to a country that supports terrorism.
On 24 May 2022, during the World Economic Forum in Davos, dozens of activists from Ukraine and Europe took part in the Stop Bloody Energy initiative against the energy business, which, despite armed aggression, continued to operate in Russia and buy Russian energy resources. [7]
On 31 May the European Union approved a sixth package of sanctions against Russia over Russia's invasion of Ukraine. [8] The sanctions related to energy are also a part of the sixth package. In particular, the EU prohibits the purchase, import, or transportation of crude oil and certain petroleum products from Russia to the EU. The planned duration of the gradual withdrawal from Russian oil is from 6 months for crude oil to 8 months for other oil products. A temporary exemption is made for EU member states that depend on Russian oil supplies because of their location and have no other good options. These countries can import crude oil by pipeline.
PJSC Gazprom is a Russian majority state-owned multinational energy corporation headquartered in the Lakhta Center in Saint Petersburg. As of 2019, with sales over $120 billion, it was, until 2023, ranked as the largest publicly listed natural gas company in the world and the largest company in Russia by revenue. In the 2020 Forbes Global 2000, Gazprom was ranked as the 32nd largest public company in the world. The Gazprom name is a contraction of the Russian words gazovaya promyshlennost. In January 2022, Gazprom displaced Sberbank from the first place in the list of the largest companies in Russia by market capitalization. In 2022, the company's revenue amounted to 8 trillion rubles. In 2023, the company is delisted from international markets, and continues substantial constriction in its operational results.
Economic sanctions are commercial and financial penalties applied by states or institutions against states, groups, or individuals. Economic sanctions are a form of coercion that attempts to get an actor to change its behavior through disruption in economic exchange. Sanctions can be intended to compel or deterrence.
The petroleum or oil industry in Russia is one of the largest in the world. Russia has the largest reserves and was the largest exporter of natural gas. It has the sixth largest oil reserves, and is one of the largest producers of oil. It is the fourth largest energy user.
Vitol is a Swiss-based Dutch multinational energy and commodity trading company that was founded in Rotterdam in 1966 by Henk Viëtor and Jacques Detiger. Though trading, logistics and distribution are at the core of its business, these are notably complemented by refining, shipping, terminals, exploration and production, power generation, and retail businesses. Vitol has over 40 offices worldwide, with its largest operations in Geneva, Houston, London, and Singapore.
Russia supplies a significant volume of fossil fuels to other European countries. In 2021, it was the largest exporter of oil and natural gas to the European Union, (90%) and 40% of gas consumed in the EU came from Russia.
DTEK is the largest private investor in the energy industry in Ukraine. The company's enterprises generate electricity at solar, wind and thermal power plants; extract coal and natural gas, trade energy products in the Ukrainian and foreign markets, distribute and supply electricity to consumers, and develop a grid of supercharger stations for e-vehicles.
Maxim Timchenko is chief executive officer of DTEK. He has headed the company since its foundation in 2005.
Chornomornaftogaz is an oil and gas company located along Krymgazseti in Simferopol, Crimea. The company was established with the order of the Ministry of Gas Industry of the USSR on 20 October 1978 №209-org to develop oil and gas resources in the Black Sea and the Sea of Azov.
International sanctions have been imposed against Russia and Crimea during the Russo-Ukrainian War by a large number of countries, including the United States, Canada, the European Union, and international organisations following the Russian annexation of Crimea, which began in late February 2014. Belarus has also been sanctioned for its cooperation with and assistance to Russian armed forces. The sanctions were imposed against individuals, businesses, and officials from Russia and Ukraine. Russia responded with sanctions against several countries, including a total ban on food imports from Australia, Canada, Norway, Japan, the United States, the EU and the United Kingdom.
Nord Stream 2 is a 1,234-kilometre-long (767 mi) natural gas pipeline from Russia to Germany running through the Baltic Sea, financed by Gazprom and several European energy companies. Feasibility studies began in 2011 to expand the Nord Stream 1 line and double annual capacity to 110 billion cubic metres, with construction beginning in 2018. It was completed in September 2021, but has not yet entered service. Planning and construction of the pipeline were mired in political controversy over fears that Russia would use it, one of 23 pipelines between Europe and Russia, for geopolitical advantage with Europe and Ukraine.
A global energy crisis began in the aftermath of the COVID-19 pandemic in 2021, with much of the globe facing shortages and increased prices in oil, gas and electricity markets. The crisis was caused by a variety of economic factors, including the rapid post-pandemic economic rebound that outpaced energy supply, and escalated into a widespread global energy crisis following the Russian invasion of Ukraine. The price of natural gas reached record highs, and as a result, so did electricity in some markets. Oil prices hit their highest level since 2008.
The economic impact of the Russian invasion of Ukraine began in late February 2022, in the days after Russia recognized two breakaway Ukrainian republics and launched an invasion of Ukraine. The subsequent economic sanctions have targeted large parts of the Russian economy, Russian oligarchs, and members of the Russian government. Russia responded in kind. A wave of protests and strikes occurred across Europe against the rising cost of living.
Following the full declaration of the Russian invasion of Ukraine, which started on 24 February 2022, institutions such as the United States, the European Union, and other Western countries introduced or significantly expanded sanctions covering Russian President Vladimir Putin, other government members and Russian citizens in general. Some Russian banks were banned from using the SWIFT international payments system. The sanctions and the boycotts of Russia and Belarus have impacted the Russian economy in various ways.
The Yermak-McFaul Expert Group on Russian Sanctions is an international group of independent experts working on the implementation of sanctions against Russia and Belarus as a response to the Russian invasion of Ukraine. The Yermak-McFaul Expert Group publishes documents, strategies and roadmaps that contain plans and recommendations for sanctions against Russia and Belarus and monitors their effectiveness. The Group's work is used by the officials of the sanction coalition. Many experts of the Group were sanctioned by Russia.
As part of the sanctions imposed on the Russian Federation as a result of the Russo-Ukrainian War, on September 2, 2022, finance ministers of the G7 group of nations agreed to cap the price of Russian oil and petroleum products in an effort intended to reduce Russia's ability to finance its war on Ukraine while at the same time hoping to curb further increases to the 2021–2022 inflation surge.
The 2021–2022 global energy crisis has caused varying effects in different parts of the world.
Starting in late 2022, Moldova suffered an energy crisis, the worst since its independence. Hugely influenced by the Russian invasion of Ukraine, caused when Russia's Gazprom reduced supplies.
As part of the sanctions which have been imposed on the Russian Federation as a result of the 2022 Russian invasion of Ukraine, on 2 September 2022, finance ministers of the G7 group of nations agreed to cap the price of Russian oil and petroleum products in an effort which was intended to reduce Russia's ability to finance its war on Ukraine and curb further increases in the 2021–2022 inflation surge.
Since the 2022 Russian invasion of Ukraine, the European Union, the G7 nations and Australia have imposed sanctions on Russia. The sanctions on oil began in December 2022 and included an embargo of Russian oil, namely, the bringing of crude oil and refined oil products from Russia to the EU and other G7 nations by ship, with a few exceptions.
The Lukoil oil transit dispute is an ongoing international relations dispute between Ukraine and the European Union at odds with Hungary and Slovakia regarding the allowance of the pipeline transfer of Russian oil through Ukrainian territory. The diplomatic standoff arose when Ukraine imposed sanctions on Lukoil — Russia's largest private oil firm — effectively halting oil supplies to Hungary and Slovakia via the Druzhba pipeline, which the latter two nations stated would lead to an energy crisis and economic collapse. In response, Hungary and Slovakia complained to the European Commission while threatening to halt military aid shipments, energy, and diesel supplies to Ukraine.
