Sanctions on energy storage

Which energy sector entities have been sanctioned?

One of the most notable energy sector entities sanctioned was the Limited Liability Company Arctic LNG 2, the operator of the Arctic LNG 2 project, set to expand Russia’s share of the global LNG market and start production in early 2024. The company has not publicly acknowledged this sanction listing.

Are US sanctions affecting Russia's energy sector?

The United States and European Union began imposing significant sanctions on Russia’s energy sector in 2014. However, both the legacy and new sanctions have largely left Russia’s ability to maintain current upstream production and supply global markets untouched.

Are feoc restrictions relevant to large-scale energy storage projects?

Our focus here is on H.R. 1’s extension and expansion of pre-existing foreign entity of concern (FEOC) restrictions for each of the tax credits most likely be relevant to large-scale energy storage projects under Sections 45Y, 48E, and 45X of the Internal Revenue Code.

How does Russia sell energy products despite Western sanctions?

Russia will continue to find licit and illicit ways to sell energy goods despite Western sanctions. Russia is using its eastern ports, such as Kozmino, to circumnavigate price cap measures and increase its exports of oil and petroleum products to alternative buyers, including China and India.

Which sectors are covered by the sanctions?

Energy sector and products covered by the sanctions are therefore also covered by this proposal. Since the implementation of the restrictive measures, it is prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the prohibitions.

Who is prohibited to provide storage capacity in a storage facility?

It is prohibited to provide storage capacity in a storage facility to any Russian national or Russian entity, or to any entity whose proprietary rights are directly or indirectly owned for more than 50 % by any Russian entity or acting on behalf or at the direction of any Russian entity.