MOSCOW, August 30. /TASS/. New US sanctions limit financing on foreign markets for the project “Nord stream – 2”. About this informed the head of Department of “Gazprom” Alexander Ivannikov in the conference call.
“As for how we will proceed with a summer of sanctions activity in the United States – I think, for anybody not a secret that Gazprom has never been in the position of a log floating down the river… As our project partners and we are committed to trying to achieve certainty, as the bill is quite vague. At the moment, even the Western legal company can’t give a clear answer to the question of what is and what is not,” said Ivannikov.
“According to preliminary estimates, it [sanctions] in no way reduces the possibility of borrowing “Gazprom” as a whole on foreign markets”, – said the head of the Department, responding to a question on the financing of the project “Northern stream – 2” in connection with new US sanctions.
Earlier it was reported that “Gazprom” assessing the impact of new U.S. sanctions for their activities.
The President of the United States Donald trump in early August signed a law, suggesting the extension of sectoral sanctions against the Russian economy, including potentially affect the interests of the group “Gazprom”.
Previously, Moody’s noted that new U.S. sanctions could prevent Russia’s Gazprom to use project financing in the implementation of the construction of the pipeline “Nord stream – 2”, and also to weaken the negotiating position on tariffs for the transit of gas through Ukraine.
Foreign projects of “Gazprom”
Currently, Gazprom is building a number of export pipelines as part of a strategy of diversification of export routes and improve the reliability and efficiency of gas exports. These include the “Nord stream – 2” and “Turkish stream”, the construction of which the company plans to complete by the end of 2019, when it expires its current contract for gas transit through Ukraine. “Nord stream is 2” to connect Russia with Germany via the Baltic sea, and “Turkish stream” will link Russia with Turkey through the Black sea.
By estimations “Gazprom, Nord stream – 2”, which cost 9.5 billion euros, will allow him to carry out the transportation of 1 thousand cubic meters of gas per 100 km for $2.1, which is 20% below the current transit tariffs with Ukraine.
According to U.S. law, sanctions can be imposed against any natural or legal person investing in the construction of Russian export pipelines. Under the act also shall mean any entity that sells, leases or provides goods, services, technology, information and providing other support that promote ongoing Russian work on the repair, maintenance, construction or modernization of export pipelines, if the cost of such work equals or exceeds $1 million (or $5 million over 12 months).
In addition, at the discretion of the President of the United States, sanctions may include the prohibition of us companies or banks to provide loans to buy shares or bonds of companies targeted by the sanctions, foreign currency transactions, export of goods, services, technology, persons targeted by the sanctions, but also to make money transfers through financial institutions in favor of these entities and to use any property within the jurisdiction of the United States, in favor of these entities.
On officials of the enterprises which have got under sanctions, there may be limitations in the issuance of entry visas of the USA. Although the text of the law says that the U.S. President may impose sanctions in coordination with US allies, is currently little clarity on how this can be implemented in practice, and the law has raised the IRE of the European Union, as it compromises the European companies involved in the construction of “Nord stream – 2” and “Turkish stream.”
In addition, 180 days after the entry into force of the law, U.S. officials must prepare a report to Congress, which analyzed the effects of increased sanctions on the Russian state debt of Russian quasi-state enterprise and the Russian oligarchs. The result can be taken further sanctions that will strengthen the negative attitude of the investors and contractors to the Russian risk.