Sanction pressure on Russia has forced foreign oilfield services companies to reconsider their business in Russia and even consider exiting the market. About Writer Kommersant, citing the source.
The European Union’s (EU) blocking sanctions against Russian oil companies, which went into effect on May 15, have caused foreign oilfield services companies to decide to change the way they do business in Russia. For example, Baker Hughes terminated all contracts with sanctioned companies. Schlumberger will transfer the property of the Russian branch to a new legal entity, and then transfer it to a local company.
According to Daria Zakabuni, attorney for Vegas Lex Special Projects Group, from May 15th, EU-registered companies, sub-sanctioned companies, and individuals who somehow belong to or act on their behalf cannot take any action, directly or indirectly, from those companies. . .
He added that subsidiaries of oilfield services companies in Russia are not required to comply with the bans. However, their further actions will depend on the main offices located in Europe. Therefore, there is a risk of non-cooperation.
At the end of April, the transnational oilfield services company Halliburton decided stop working on various contracts in the Russian Federation on the background of sanctions. This is reported by TASS with reference to representatives of the organisation. It is assumed that the execution of contracts in Russia will be interrupted by mid-May.