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    Canada bans export of oil and gas services to Russia

Summary

Sanctions target industry that provides half of Russian federal revenues.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, World, Americas, Europe, Security of Supply, Political, Territorial dispute, News By Country, Canada, Russia, Ukraine

Canada bans export of oil and gas services to Russia

The Canadian government on June 8 said it was imposing a ban on the export of 28 services to Russia critical to oil and gas production and chemicals manufacturing.

“The Russian invasion of Ukraine has now lasted over 100 days,” Canadian foreign affairs minister Melanie Joly said. “In that time, Vladimir Putin and his regime have caused untold pain and suffering in Ukraine and across the world. We will continue to relentlessly pursue accountability for Vladimir Putin’s senseless war. Canada will do everything in its power to prevent Putin’s ability to fuel and finance his war machine.”

The new sanctions, which ban the export of technical, management, accounting and advertising services, target an industry that accounts for about half of Russia’s federal budget revenues.

“These measures will reduce Russia’s ability to wage war and will send a clear message to the Russian regime: Canada will not back down in holding those responsible for the devastation in Ukraine to account,” Global Affairs Canada said in a statement. “Canada will continue to work with its likeminded partners in the international community to coordinate further measures.”

At the Global Energy Show conference in Calgary the same day, Ukraine’s new ambassador to Canada, Yulia Kovaliv, welcomed the new sanctions, but said the embattled nation needs more help, especially to build its own energy resources.

Also at the Global Energy Show, executives of Ukraine’s state-owned Naftogaz said the Dnieper-Donets basin, in the eastern part of Ukraine, could be a major supplier of natural gas to the rest of Europe, but again, investments in technology and know-how are desperately needed.

“Gas is here in abundance,” said Bryan Sralla, director of unconventionals at Naftogaz. “But we need North American know-how and North American investment, including expertise in horizontal drilling, which has yet to come to Ukraine.”