Europe Still Clings to Russia Gas With Record LNG Flow This Year

Bloomberg) — The European Union boosted imports of Russian liquefied natural gas against the backdrop of deepening tensions over pipeline supplies that flow through Ukraine.

The bloc purchased a record amount of Russian LNG this year, according to ship-tracking data compiled by Bloomberg. Among top buyers, France has already hit its highest-ever volumes and Spain is closing in on records seen last year.

The numbers show that Europe is still hooked on energy from Russia, which remains one of the continent’s top gas providers despite severe cuts in supplies in 2022. While officials in the EU and Kyiv have called for a halt in purchases, there’s still no region-wide ban on the fuel and it remains a cheaper option for many buyers.

Countries such as the UK, Germany and the Baltic states have stopped taking Russian gas altogether.

Molecules mix and Russian gas becomes French or Belgium gas! See how that works?

Ukraine Blames Russia for Cyberattack on Critically Important Infrastructure

Ukraine blames Russia for mega cyberattack on ‘critically important’ infrastructure

“The enemy is trying to use this situation in its information operations to sow panic among citizens of Ukraine and abroad,” says Kyiv’s deputy PM.

Ukraine Friday blamed Russia for a major cyberattack on crucial government databases.

Ukraine’s Deputy Prime Minister Olha Stefanishyna wrote on Facebook earlier on Friday that the “largest external cyberattack on [the] state registers of Ukraine in recent times” had taken place.

“It is already clear that the attack was carried out by the Russians with the aim of disrupting the work of the critically important infrastructure of the state,” Stefanishyna said.

The cyberattack took place while Russian forces hit Kyiv with a huge ballistic missile attack, as Russian leader Vladimir Putin’s grinding multiyear assault on Ukraine shows no signs of letting up.

The group claiming to be responsible for the attack said in a post on the Telegram channel “XakNet Team” that it had also targeted backup servers in Poland. POLITICO has not been able to verify that claim.

“The enemy is trying to use this situation in its information operations to sow panic among citizens of Ukraine and abroad,” Stefanishyna wrote about the cyber warfare. 

As a result of the attack, the Unified and State Registers were temporarily suspended, Stefanishyna said. State registries are government records of information like people’s civil status and property rights. 

The attack has not affected the functioning of other services, she said. Russia has hit Ukraine with constant cyberattacks during the war, including on energy infrastructure. 

Ukrainian specialists are working to restore access to the databases, prioritizing registers for citizens’ civil status, legal entities and real estate rights, Stefanishyna said. That should take about two weeks, she said. 

Russia’s energy giant Rosneft signs deal to boost oil supplies to India

Russia’s largest oil producer Rosneft and India’s top refiner Indian Oil Corp have signed a term agreement to substantially increase oil supplies and diversify oil grades delivered to India, Rosneft said.

The deal was signed during a working trip to India by Rosneft CEO Igor Sechin, the company said on Wednesday. It did not reveal the details of the agreement.

It said in a statement that Sechin brokered the agreement “to substantially increase oil supplies … to India.”

“The parties also discussed ways of expanding cooperation between Rosneft Oil Company and Indian companies in the entire value chain of the energy sector, including possibilities of making payments in national currencies,” it added.

Kuwait Times

Economic Times of India via Archive.ph

During the trip, Rosneft Oil Company and Indian Oil Company signed a term agreement to substantially increase oil supplies as well diversify the grades to India. Igor Sechin, CEO of Rosneft Oil Company, and Shrikant Madhav Vaidya, Chairman of Indian Oil Corporation Ltd., signed the agreement. They also discussed ways of expanding cooperation between Rosneft Oil Company and Indian companies in the entire value chain of the energy sector, including possibilities of making payments in national currencies.

Rosneft CEO also discussed ongoing implementation of joint projects between Rosneft and its Indian partners, including Sakhalin-1, Taas-Yuryakh and Vankorneft.

Driven largely by a surge in oil imports, Russia has emerged as one of the top 5 trading partners of India.

Indian companies (ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation, and Bharat Petroresources) have been owners of 49.9% of the Rosneft’s subsidiary JSC Vankorneft since 2016. This company is located in Krasnoyarsk Territory and develops the Vankorskoye oil and gas condensate field, one of the biggest fields discovered and brought on stream over the last 25 years in Russia.

Let’s read what Putin has to say

Occupied Germany

Compliant Europeans

Investigations by European nations, including Denmark, through whose waters the pipeline travels, and Germany, have yet to yield conclusive results.

Putin voiced regret that Russia has been denied access to the materials of the probe. He added the Russian Gazprom natural gas giant has sent a vessel to check the seabed near the explosion and spotted what appeared to be an antenna near a junction between the pipes about 30km (16 nautical miles) from the explosion site.

Putin alleged the antenna could have been put on the seabed to trigger another explosive device that did not detonate for a reason that remains unclear. He added Russia expects Danish authorities to form a joint team to thoroughly check the area.

State Minister for Petroleum Musadik Malik on Saturday said that preparations for the agreement to purchase discounted oil from Russia were complete.

Talking to a private news channel regarding the agreement, Malik said that the entire delegation, including the Russian Energy Minister, was set to visit Pakistan.

“Serious talks are going on with Russia and delegations will arrive only when preparations are completed,” he added.

Malik maintained that Russia would either give Pakistan a discount equal to that it was giving other countries or a potentially higher discount.

He further said that the ministry would try its best to settle the matter in the interest of Pakistan.

“We spoke to Russia after meeting with oil refineries. Preparation of the contract is complete but we cannot speak prematurely,” he said.

Malik also said that refineries are linking the dam duty with investment in the policy, the duty savings would be invested by the refineries and the government would audit them regularly.

He stated that it is in the “interest of our country to invest money in innovation and upgrading of refineries,” adding that “our refineries produce more furnace oil which has no market anywhere”.

Earlier, Malik and the petroleum secretary participated in the online meeting with Russia from the Pakistani side. The sources added that officials of the Russian energy ministry represented their side in the online moot.

Archive.ph

Russian ministers continue to insist that the country won’t sell oil to anyone supporting the arrangement. But all the nations that have signed up to the cap have also imposed their own import bans, so they won’t be buying anyway.

Other countries, like China, India and Turkey, are free to continue negotiating purchases with Russian companies. If those deals are done at prices below $60 a barrel, then the crude can be carried on European ships covered by international insurance and facilitated by European banks, brokers and other service providers. If they aren’t, buyers and sellers will have to make other shipping arrangements.

India signals it will continue to buy oil from Russia

India will prioritize its own energy needs and continue to buy oil from Russia, its foreign minister has indicated as Western governments implemented a price cap to squeeze Moscow’s earnings from oil exports.

Without the price cap, none of Russia’s crude exports could be carried on European tankers, nor could any UK or European Union companies provide insurance, financing or any other service to the vessels used. And that would disrupt flows.

Will any crude be sold at a price below the cap? Almost certainly, because the threshold has been set above the price that Russian crude is already fetching at its Baltic export terminals.

That ought to keep Russian oil flowing, which is what the US sponsors of the cap want. Just don’t expect anyone else to be happy about it.

• Erdogan’s close relations with Putin anger Western powers
• Turkey has positioned itself as a mediator in Ukraine war

Clearly the US is not interested in settling the Ukraine situation or they’d appreciate Turkey’s moderation. Also, for Kaz, this US desire for war and more war likely explains the recent actions HTS has undertaken in Syria’s north.

US officials have held talks with their Turkish counterparts regarding compliance with financial sanctions imposed on Russia over its invasion of Ukraine, the latest move by the West to pressure Ankara into taking a harder line against Moscow. 

A delegation led by Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the US Treasury, met the Turkish central bank governor and business groups in Ankara and Istanbul earlier this week, and was due to engage with local Treasury officials on Wednesday, according to people familiar with the discussions. They asked not to be identified because the talks were private. 

Gives me a very good idea on what angle the US is going to play moving forward- Very disingenuous all things considered.

The US Treasury didn’t immediately respond to a request for comment. 

The visit comes a week after Turkish President Recep Tayyip Erdogan and his Russian counterpart Vladimir Putin held talks in the Kazakh capital, their fourth in-person meeting in as many months. The two leaders agreed to boost energy ties and set up an international gas hub in Turkey, potentially positioning the country as a key route for Russian flows to Europe.

Turkey’s deepening economic and trade ties with Russia, bolstered by Erdogan and Putin’s cordial relationship, has drawn the ire of the West, which wants to forge a unified international front (NATO) to persuade Moscow to change course on Ukraine. 

Deputy US Treasury Secretary Wally Adeyemo visited Turkey in June, part of an effort by President Joe Biden’s administration to rally support for a clampdown on Russian assets abroad. Adeyemo later issued a letter to several Turkish business groups warning them of the implications of conducting business in Russia. 

In September, the Treasury’s Office of Foreign Assets Control, warned financial institutions about the risks of entering new agreements or expanding existing ones with the Russian operator of Mir payment cards. That alarmed Turkish officials, and all five Turkish banks that were participating in the system subsequently abandoned it. 

Erdogan has strategic and well-established ties with both Kyiv and Moscow, and has sought to position Turkey as a mediator in their war. He has helped secure deals to resume grain shipments from Ukraine’s Black Sea ports and facilitated prisoner exchanges. 

Read more: Putin’s War Machine Funding Is Unscathed by Latest US Sanctions

While Turkey has condemned Russia’s invasion and spoken against its annexation of four Ukrainian regions, Erdogan has publicly defended Putin against Western sanctions. 

Turkey has become an increasingly important partner for Putin as the sanctions shutter other routes for trade, travel and investment. And Erdogan, who will seek another term in elections next year, is looking to Russia to help bolster Turkey’s troubled economy, an effort that includes securing discounted gas and an agreement for payments to be made in lira. 

Ibrahim Kalin, a spokesman for the Turkish presidency, confirmed on Tuesday that talks about delaying Turkish state-run energy importer Botas’s payments to Russia until 2024 were “ongoing.”

We’ve talked about the targeting of Germany previously via the western sanctions. Loss of mass production and jobs. Weakening Germany.

Volkswagen and other car makers in Germany may move production due to a lack of available energy. Germany, the biggest economy in the EU. Weakening that nation through falling productions and job losses will subordinate the EU as a whole. Italy’s the second biggest economic player has just been warned.

Sept. 27 (UPI) –– German officials on Tuesday are trying to find out what caused leaks in two natural gas pipelines from Russia to Germany, adding another energy dilemma between the two countries in the backdrop of Russia’s invasion of Ukraine and punishing economic sanctions against Moscow.

The pipelines — Nord Stream 1 and Nord Stream 2, had not been active but were still filled with natural gas when authorities noticed a sharp drop in pressure on Monday.

Following Italy’s “turn to the right” election- A win that sees the return of Berlusconi (who isn’t exactly “anti Russia”) – as well as a sharp rebuke from “Vandercrazy” (ala the Duran)

Back to the pipelines

“We are currently in contact with the authorities concerned to clarify the matter,” Germany said in a translated statement. “We still have no clarity about the causes and the exact facts. It is also still being clarified whether the incident occurred in German territorial waters“

“Specifically, the exchange between BMWK, the network operator, the Federal Network Agency, the Federal Police and the local mining authority in Stralsund as well as the responsible state ministries in Mecklenburg-Western Pomerania“

A statement from the Danish Maritime Authority said it discovered a leak in the Nord Stream 2 pipeline in their part of the Baltic Sea.

“The preliminary assessment indicates that a leak has occurred from one of the two Nord Stream 2 pipelines in the Danish area Southeast of Dueodde at Bornholm … from where natural gas is leaking,” the Danish statement said.

“The Danish Maritime Authority has released a navigational warning and established a prohibitive zone within five nautical miles of the pipeline, as it is dangerous for naval traffic.”

The maritime authority added that there were not any security risks related to the leak outside of the prohibitive zone and that the incident was not expected to impact the security of the Danish gas supply.

The operator of Nord Stream 1 confirmed later a pressure drop had been detected and confirmed by the German economy ministry.

The pipelines have been part of a confrontation between Russia and Europe connected with Moscow’s invasion of Ukraine. Russia began withholding the natural gas that for decades it had abundantly sent to Europe because of sanctions levied by the West over the war.

Rare to see the admission made directly above- Western sanctions ultimately being responsible for European nations being deprived of energy– Negotiations were always the better way. Avoiding duplicitous behaviour would have been good too

European governments have eased back on efforts to curb trade in Russian oil, delaying a plan to shut Moscow out of the vital Lloyd’s of London maritime insurance market and allowing some international shipments amid fears of rising crude prices and tighter global energy supplies.

The EU announced a worldwide ban on the provision of maritime insurance to vessels carrying Russian oil two months ago, expecting co-ordinated action with the British government.

However, the UK is yet to introduce similar restrictions. UK participation is pivotal to the effectiveness of any such ban because London is at the centre of the marine insurance industry.

Meanwhile, Brussels in late July amended some curbs on dealing with state-owned Russian companies, citing concerns over global energy security.

A joint UK-EU prohibition on maritime insurance would constitute the most comprehensive restriction to date on Russian oil, ending access to much of the global tanker fleet for Moscow’s exports.

But US officials have expressed concern that an immediate global ban on maritime insurance would push up prices by pulling millions of barrels of Russian crude and petroleum products off the market.

European and British officials told the Financial Times in May that the UK had agreed with the EU to co-ordinate a ban on insuring Russian oil cargoes.

However, Britain's latest sanctions against Russia, approved by Parliament in July, only prohibit providing insurance to vessels carrying Russian oil to the UK, and only after December 31.

The legislation was introduced after the government promised to outlaw the import of Russian oil from the end of the year but does not ban the provision of services to shipments from Russia to other countries, UK officials said.

“There is no current UK ban affecting global shipments of Russian oil,” said Patrick Davison, underwriting director of the Lloyd’s Market Association, an industry group for insurers at Lloyd’s.
“Given the global nature of the [re] insurance industry, the existence of the EU restrictions may well impact appetite for Russian oil shipments in London.”

He said Lloyd’s was in close contact with [the UK government] “and will work with them on any future sanctions they seek to introduce.”

The UK Treasury said it was still exploring the best course of action.

"We stand ready to impose further sanctions on Russia and are working in conjunction with our allies at pace to ensure these can be implemented with maximum effect on the Russian economy," it said.

The EU’s insurance ban was introduced on June 4 and remains in place. It prevents companies in the bloc from writing new insurance for any vessel carrying Russian oil anywhere.

Existing contracts remain valid until December 5, when all such business will be banned.

However, the EU has amended part of its own sanctions to permit European companies to deal with some Russian state-owned entities, such as Rosneft, for the purpose of transporting oil to countries outside the bloc.

European companies will no longer be blocked from paying the likes of Rosneft, “if those transactions are strictly necessary”, for the purchase or transport of crude or petroleum products to third countries, a European Commission spokesperson told the FT.

The EU said in a statement that the measures were taken to “avoid any potential negative consequences for food and energy security around the world”.

The White House has been working since June to push G7 countries to support a price-cap mechanism that would allow some Russian oil to reach third countries as long as they agreed to pay a below-market price for the cargo.

Officials in Washington said the US and UK still plan to ban maritime services, including insurance, by the time the EU’s ban takes full effect in December.
But they want an oil price cap in place first. US President Joe Biden is keen to reduce gasoline prices before midterm elections in November.

Sanctions lawyers said the EU appeared to be soft-pedalling its efforts to stem the global flow of Russian oil, and that there was new uncertainty among traders over the UK’s commitment to a global insurance ban.

Sarah Hunt, a partner at HFW, a law firm, said trading houses were inquiring whether it was now legal to buy Rosneft oil to ship to countries outside the EU.

“The new EU sanctions effectively permit the lifting of Russian crude by European companies. We were surprised by this,” she said.

Leigh Hansson, partner at Reed Smith, another law firm, said the EU's sanctions amendment was a "big retreat", adding that lawyers had also been expecting "more robust" measures by now from the UK.

Gazprom proposes adding LNG to rouble-for-gas scheme -Ifax

MOSCOW, July 4 (Reuters) – Russian gas producer Gazprom (GAZP.MM) has proposed expanding its rouble-for-gas scheme for pipeline gas to include liquefied natural gas (LNG), the Interfax news agency quoted a senior manager as saying on Monday.

The proposal from Kirill Polous, a deputy department head at Gazprom, comes after Russia moved to seize operations of the Sakhalin-2 LNG plant last week in retaliation for Western sanctions.

Russia accounts for around 8% of global LNG supply with 40 billion cubic metres of super-cooled gas per year coming mainly from Sakhalin-2 and Novatek’s (NVTK.MM) Yamal LNG, Russia’s largest LNG plant.

Russia is moving to further tighten its grip on the nation’s oil and natural gas supplies, issuing a decree for the country to take over the Sakhalin-2 liquefied natural gas (LNG) export project on Sakhalin Island north of Japan.

An executive order signed by Russian President Vladimir Putin to “protect the national interests” calls for establishing a Russian limited liability company to take over the rights of a partnership between Shell plc, Gazprom PJSC and Japanese trading houses Mitsui & Co. Ltd. and Mitsubishi Corp. The move could ultimately force the foreign entities out of their ownership positions.

The “ownership of the company’s property, created within the framework” of a production sharing agreement signed in 1994 “shall be transferred forthwith to the Russian Federation,” according to the executive order that was dated June 30.

Stakeholders said Friday that they were reviewing the decree. It has raised red flags in the energy sector, particularly in Japan, which relies on Russia for a significant portion of LNG imports.

“The move by Putin is certainly unnerving for Japan, but I don’t think that Moscow is trying to end all LNG deliveries to Japan, because at the end of the day, Japan pays a lot of money for Russian LNG, money that the Russian state needs,” said Yuriy Humber, CEO of the Tokyo energy consultancy Yuri Group.

https://www.energyintel.com/00000181-b997-d2ff-a9f3-bb97846c0000

Russian leader Vladimir Putin signed a decree late Thursday to change the ownership structure of the Sakhalin-2 upstream and LNG project — a move that might squeeze out foreign shareholders Shell, Mitsui and Mitsubishi.

Many Russia watchers have expected Moscow to take nationalization steps in response to the planned exodus of investors from “unfriendly” countries and international sanctions amid the war in Ukraine.

Kremlin spokesman Dmitry Peskov suggested Friday that the Sakhalin-2 decree is not the start of a nationalization trend. “Each case will be considered individually,” he was quoted as saying.

Still, even if nationalization does not become widespread, observers do not expect Sakhalin-2 to be the only target.

https://oilprice.com/Latest-Energy-News/World-News/Russia-To-Take-Over-Whole-Sakhalin-2-Project.html

A newly set up state Russian company will take over the rights and obligations of Sakhalin Energy Investment Co., the joint venture running the Sakhalin-2 oil and gas project, Reuters reported today.

This could mean a forced exit from the project for Shell and Japan’s Mitsui and Mitsubishi, which are minority shareholders in Sakhalin Energy Investment Co.

Shell already said it would leave the project a few months ago and has since then been looking for buyers for its stake in Sakhalin-2. According to earlier reports, a sale could be made to a group of Indian companies.

Shell was already leaving with a group of India buyers set to step in.

The Japanese companies, however, have not announced intentions to leave the project. In fact, earlier this year, Japan’s economy, trade and industry minister, Koichi Hagiuda, said that the Sakhalin-1 and Sakhalin-2 projects “are essentially important for energy security because the projects allow Japan to procure supplies below the market price, especially amid current high energy prices.”

Despite its participation in Western sanctions against Russia, Japan continues to buy liquefied natural gas from Sakhalin-2. Although it has stated its intention to step up the intake from alternative sources, a complete suspension of Russian energy imports seems unlikely at this point.