But Will That Persuade Putin
Both the United States and Europe announced new economic canada goose coats on sale sanctions this week against Russia for its role in the conflict in Ukraine. Among other things, Western companies will no longer be able uk canada goose to sell Russia new technologies to develop its oil fields.
The move comes at canada goose store a time when oil exports have become more important than ever for the Russian economy.
«We’ve also made it clear, as I have many times, that if Russia continues on its current path, the cost on Russia will continue to grow,» he said earlier this week. «Today is a reminder that the United States means what it canada goose outlet online says.»
Targeting Russia’s energy sector is official canada goose outlet one way the West is hoping to get its point across.
It’s hard canada goose outlet to overestimate the importance of energy to Russia’s economy. Three quarters of everything https://www.nationaalzweminstituuteindhoven.nl Russia exports are commodities, and most of that is oil and natural gas. Yet the sanctions imposed this Canada Goose Outlet week are limited. For one thing, European officials insisted that the sanctions not apply to natural gas exports.
Nor will the sanctions affect oil production that’s taking place now. Any impact the sanctions will have on the oil sector is very long term. Russia now has vast oil supplies, producing more than 10 million barrels a day. But over the next few decades, the reserves are expected to run dry.
«As the Russians cheap canada goose deplete their existing oil fields,» says Pifer, «they’re looking canada goose black friday sale offshore, they’re looking up into the canada goose outlet parka north in the Arctic area, the northern parts of canada goose coats Russia and there’s significant potential there. And so they want to bring fields up there online as they draw down and deplete existing fields.»
In a corporate video, the Russian oil company Rosneft boasts that hundreds of geological sites are being explored throughout Russia: «Western and eastern Siberia, south and central canada goose outlet reviews Russia, Far East and Arctic sea shelves are major goose outlet canada resources of oil and canada goose outlet uk gas not only for the company, but also for all of Russia,» the video says.
And yet to Canada Goose sale tap these new fields, Russia depends on Western companies like BP, canada goose outlet online uk Halliburton and canada goose jacket outlet Exxon Mobil, all of which are engaged in lucrative joint projects with Russian companies. technology,» says David Goldwyn, a former State Department official who now heads an energy consulting firm.
Whether this is enough to get Russia to change course anytime soon is very much unclear. Matthew Rojansky of the Woodrow Wilson center canada goose uk outlet is skeptical. He says President Vladimir Putin has invested a lot of his political canada goose clearance sale power in canada goose outlet sale the Ukraine conflict; his survival as a leader may be at stake.
«I still query whether the leverage that we can realistically have at the end of the day is enough to overcome the competing pressure that Mr. Putin feels, because I think that that competing pressure is far greater than we have understood it.»
With so much at risk, the impact of the sanctions on Russia’s oil industry years from now probably doesn’t register as a priority for Putin. Western officials may have to show they’re willing to go even further than they already have if they hope to have any real impact on what Russia does next.