All
 
|
 
 


Legal Arrangements for Natural Gas Export under Sanctions
 
PIIS231243500025251-4-1
DOI10.18254/S231243500025222-2
Publication type Article
Status Published
Authors
Sergey S. Koshman 
Occupation: Junior Research Scientist of Musin Research Center for the Development of Energy Law and Modern Legal Science Autonomous Non-Commercial Organization
Affiliation: Musin Research Center for the Development of Energy Law and Modern Legal Science Autonomous Non-Commercial Organization
Address: Russian Federation,
Journal nameEnergy law forum
EditionIssue 1
Pages61-66
Abstract

In 2022, the Russian fuel and energy complex was subjected to unprecedented pressure from foreign states committing unfriendly actions through the application of various sanctions. The export of natural gas as a key source of oil and gas revenues of the budget of the Russian Federation is one of the main targets of economic sanctions. In order to reduce the negative impact of the application of economic sanctions, the development and application of prompt response measures, effective arrangements of legal regulation to counteract economic sanctions against Russian natural gas export, becomes urgent. This article analyzes the types of sanctions applied by states committing unfriendly actions to the export of natural gas, as well as the response legal regulation mechanisms adopted in order to counteract sanctions. Based on the results of the analysis, the author formulated recommendations for the development of legal regulation of natural gas export under sanctions.

Keywordsenergy law, legal regulation of gas export, counteractions to economic sanctions
Received06.02.2023
Publication date31.03.2023
Number of characters12303
Cite   Download pdf To download PDF you should sign in
100 rub.
When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.
1 In 2022, the Russian fuel and energy complex was subjected to unprecedented pressure from foreign states committing unfriendly actions through the application of various sanctions.
2 V.V. Romanova rightly draws attention to the fact that new challenges from unfriendly states, economic sanctions against Russian energy companies, as well as companies in related industries, cause the strengthening of energy law order protection mechanisms in order to ensure the energy security of the Russian Federation. [1]
3 Foreign sanctions affect various spheres of activity of the Russian fuel and energy complex, including pricing issues, [2] corporate governance, [3] and procurement activities. [4]
4 In order to protect public and private interests from sanctions, the Russian Federation began to develop a system of legal regulation to counter sanctions.
5 The relevance of the development and application of prompt response measures, effective arrangements of legal regulation to counter economic sanctions against Russian natural gas export, should be noted separately.
6 In order to develop and apply effective arrangements for countering sanctions, it is advisable to establish which of them were directed against the export of Russian natural gas, and what consequences their application leads to.
7 Among the key sanctions affecting the export of natural gas, it is necessary to highlight the following:
8 - Restriction on access to foreign technologies. [5] This restriction leads to the withdrawal of foreign companies from the Russian market, restricting access to intellectual property items;
9 - Inclusion of Russian individuals and legal entities involved in the export of natural gas in the sanctions lists, [6] which leads to the restrictions on the rights of such persons in the form of seizure of property, prohibition of transactions, etc.;
10 - Establishment of a price cap for natural gas, [7] which is expressed in the creation of artificial restrictions on natural gas prices that are not related to free market pricing arrangements;
11 - Prohibition of the supply of certain categories of goods to the Russian Federation, [8] which is expressed in the inability to supply (lease) foreign equipment, devices, apparatuses, spare parts used in the export of natural gas from unfriendly states;
12 - Seizure of property, which, among other things, leads to the restriction of the right to dispose of funds of Russian energy companies on accounts with foreign banks;
13 - Deprivation of control over the management of energy companies abroad, [9] which consists in the appointment of provisional administration (managers) by foreign state authorities in Russian energy companies registered abroad, which leads to the deprivation of the ability of the founders of such companies to influence corporate governance, commercial decision-making;
14 - Expropriation. Expropriation of property, including real estate owned by Russian energy companies abroad (energy facilities, land plots, buildings, etc.).
15 All of the above examples of sanctions have a significant negative impact on natural gas export. The negative consequences of their application affect various stages of the natural gas export chain such as: extraction, transportation, storage, and sale. The content of sanctions lies in their direct focus both on the target (a particular energy company) and on the creation of external conditions leading to the refusal of interested parties to enter into relations with the addressee of sanctions.
16 The listed examples of sanctions in relation to natural gas export require the adoption of prompt and effective response measures, the main purpose of which is to reduce the negative effect of the adoption and application of sanctions against the Russian Federation and Russian energy companies.
17 As V.V. Shabunya reasonably notes, the analysis of the laws of the Russian Federation on countering unilateral sanctions proves the formation and development of the system of anti-sanctions laws of the Russian Federation in the last decade. [10]
18 Due to the unprecedented increase in pressure on the Russian fuel and energy complex, in 2022, this system of anti-sanctions regulation has gained notable development.
19 V.V. Romanova rightly notes that the special economic measures adopted in the Russian Federation (despite their temporary nature according to the current laws) in their content and scope actually form new conceptual framework for the functioning of energy markets both at the national and international levels. [11]
20 This statement is particularly justified in relation to those special economic measures that have been taken in relation to the export of natural gas.
21 Due to the public-law nature of sanctions as an act of a state (association of states), the purpose of which is to create negative consequences, primarily of economic nature, for another state and/or legal entities (individuals), countering sanctions is possible by creating an appropriate system of legal regulation aimed at establishing and applying response measures to such unfriendly actions.

views: 164

Readers community rating: votes 0 

1. Romanova V. V. § 1. Trends in the Development of Legal Regulation of the Fuel and Energy Complex in the Context of Economic Sanctions / V. V Romanova // Relevant Tasks of Energy Law / Edited by V.V. Romanova. Moscow : Integration: Education and Science Limited Liability Company, 2022. – p. 10.
2. https://www.rbc.ru/business/19/12/2022/63a086de9a794743cd81f578 
3. Akimov N.A. Priority Tasks in the Development of Corporate Governance in the Energy Industry under Sanctions / N.A. Akimov // Energy Law Forum. – 2022. – No. 3, p. 40–50.
4. Saushkina S.M. Legal Regulation of the Further Development of Digitalization of Procurement Activities in the Energy Industry / S.M. Saushkina // Energy Law Forum. – 2022. – No. 4 – p. 24–29.
5. https://www.dp.ru/a/2022/04/11/ES_vvjol_zapret_na_postavk 
6. https://www.forbes.ru/biznes/456969-sber-gazprom-i-al-fa-bank-ssa-raskryli-novyj-spisok-sankcij-protiv-rossii 
7. https://www.vedomosti.ru/business/articles/2022/12/19/956064-strani-es-postavyat-potolok 
8. https://www.kommersant.ru/doc/5318354 
9. https://www.vedomosti.ru/business/news/2022/04/04/916557-germaniya-vremennoe-upravlenie 
10. https://www.forbes.ru/biznes/479819-rosneft-podala-v-sud-na-pravitel-stvo-germanii-iz-za-utraty-aktivov 
11. Shabunya V. V. The State Policy of the Russian Federation Concerning the Ensurance of Sustainable Functioning and Development of the Fuel and Energy Complex under the Conditions of Sanctions Pressure / V. V. Shabunya // Energy Law Forum. – 2022. – No. 3. – p. 27–39.
12. Romanova V. V. § 2. The Objectives of Energy Law on the Further Formation of the Energy Law Order at the National and International Levels in the Context of Economic Sanctions / V. V Romanova // Relevant Tasks of Energy Law / Edited by V. V Romanova; V.A. Musin Research Center for the Development of Energy Law and Modern Legal Science. – Moscow : Integration: Education and Science Limited Liability Company. – 2022, p. 30.
13. https://www.vedomosti.ru/business/news/2022/11/17/950814-sud-obyazal-gasum-viplatit-gazprom-eksportu 
14. Available at:https://www.vedomosti.ru/business/articles/2022/10/12/945202-miller-otsenil-defitsit 
15. https://www.kommersant.ru/doc/5608372 
16. Jotanovic, V., D’Ecclesia, R.L. The European Gas Market: New Evidences. Ann Oper Res 299, 963–999 (2021). P. 967
17. Romanova V. V. Relevant Tasks of Energy Security Legal Regulation / V. V Romanova // Energy Law Forum. – 2019. – No. 3. – p. 4–10.

Система Orphus

Loading...
Up