((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(In paragraph 11, please read “The United States brought together 14 countries, including Korea, plus the European Union” instead of “15 countries and a partnership with Korea.”) by Curtis Williams
The U.S. State Department believes that oil services company SLB SLB.N did not violate sanctions against Russia and the company was informed of what Washington was prepared to accept, the deputy secretary of state said Geoffrey Pyatt in an interview with Reuters on Wednesday.
“I have had conversations with the chief executive of this company… I think there is a clear understanding within SLB regarding the safeguards of the sanctions policy,” Mr. Pyatt.
The United States and other European countries have sought to reduce Moscow’s energy revenues through sanctions that have prompted several oil services companies to leave the country since Russia invaded Ukraine in 2022. SLB is remained present in the country, helping to maintain Russian oil production.
“I am confident, based on my conversations with my Treasury colleagues, that SLB’s actions have thus far complied with the rules established by OFAC, Treasury and the Price Cap Coalition,” said Mr. Pyatt.
The United States is determined to ensure that Russia does not become a reliable energy partner again and Washington will continue to sanction current and future energy projects, while ensuring not to cause oil price shocks, Mr. Pyatt.
SLB did not respond to a request for comment. Last year, the company generated 5% of its turnover in Russia. It employed 10,000 people in Russia () to help Gazprom Neft, Rosneft and other major energy companies pump oil and gas when the war began in 2022.
The U.S. Treasury is also going after shippers, insurance companies and others who circumvent sanctions. Russia’s tax revenue from oil and gas fell by about a third year over year.
Washington targets Russia’s future energy projects, including liquefied natural gas (LNG), to prevent Russia from sending gas that was previously delivered by pipeline to European customers to global markets as LNG , explained Mr. Pyatt.
“So you have seen very strong sanctions against Novatek and there will be more in the short term on this,” he told Reuters.
Technology sent by China to Russia to aid its war efforts is another area of concern, the deputy secretary of state said, and is one reason the United States believes access to rare earths is crucial for global energy security.
The United States brought together 14 countries, including Korea, along with the European Union to invest tens of billions of dollars in the value chain, including access to critical minerals, to end the domination of China on trade.
“We have been slow to recognize China’s moves to dominate the supply chains of these critical inputs to the energy transition,” Mr Pyatt said.
The United States and Korea will team up to develop batteries and electric vehicles as part of their energy security partnership, Pyatt added.
