Latest EU sanctions on Russia target energy investments

A new round of EU sanctions on Tuesday restrict new investments into Russia's energy sector, with limited exemptions for civil nuclear energy and transport of certain energy products to the EU.

“The investment ban on the Russian energy sector is far-reaching and comprehensive,” the EU said in a statement.

The sanctions will affect Russian oil and gas companies such as Rosneft and Gazprom, but EU members can still buy oil and gas from Russia, an EU official told Reuters.

Certain investments are still needed to ensure supply energy products to Europe, and these will now require prior approval from competent authorities of EU member states.

Earlier this month, major European oil and gas firms such as Shell, BP, TotalEnergies, ENI and Equinor announced they would cut ties with Russian partners and stop buying Russian oil in direct responses to Russia's invasion of Ukraine.

The International Energy Agency (IEA) estimates that as much as 3 million b/d of Russian oil output could be shut in by 3 April as a result of economic, financial and trading sanctions on Russian oil and firms, and many buyers shunning Russian import cargoes.

“The implications of a potential loss of Russian oil exports to global markets cannot be understated. Russia is the world’s largest oil exporter, shipping 8 mb/d of crude and refined oil products to customers across the globe,” the energy watchdog said in its latest Oil Market Report.