Morgan Lewis US and Russia Sanctions Update slide image

Morgan Lewis US and Russia Sanctions Update

EU Sectoral Sanctions (cont'd) Energy (cont'd) Restricted activities include (per Reg. art. 3a, as amended Dec. 2014): Provision, directly or indirectly, of specified types of "associated services necessary for" deepwater, Arctic offshore, shale oil E&P projects (same litany-detail as for art. 3 - see slide 72 above) in Russia including in its EEZ and Continental Shelf (again note uncertainty re Russia's Caspian zone): these specified types of services: • drilling • completion services • well testing · logging • supply of specialised floating vessels* [* Note: EU Guidance Note FAQ 10 exempts "supply vessels such as platform supply vessels, anchor handling tug and supply vessels or emergency response vessels"] and the same exceptions apply for execution of an obligation arising from a prior (pre-12 Sept. 2014) contract / agreement or follow-on ancillary contracts, or services necessary in case of certain events threatening health, safety or environment again, otherwise apparently no scope for authorization here - rather, a pure prohibition for / to all (if neither of the above two carve-outs applies) but may be attainable for activities (per Reg. arts 3 or 3a) in shallow-water portion of mixed shallow/deep water field? Morgan Lewis 74
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