Council of the European Union expanded the list of sanctions concerning annexation of the Crimean Peninsula
On the 12th of May 2014 the Council of the European Union expanded the list of sanctions concerning annexation of the Crimean Peninsula. They included PJSC “CHERNOMORNEFTEGAZ” and STATE ENTERPRISE “FEODOSIA ENRERPRISE ON OIL SUPPLY” to the noted list.
Previously, on the 13th of April 2014 the government of Canada imposed sanctions on PJSC CHERNOMORNEFTEGAZ and on the 16th of April the Bureau of Industry and Security of US Department of Commerce included PJSC “CHERNOMORNEFTEGAZ” in the US export control list.
The cause of the abovementioned sanctions was the Ruling of the State Council of the Republic of Crimea on the Energy Safety in the Crimea No. 1758-6/14 dd. the 17th of March 2014 which recognized both movable and immovable property of PJSC “CHERNOMORNEFTEGAZ” and STATE ENTERPRISE “FEODOSIA ENRERPRISE ON OIL SUPPLY” as the property of self-proclaimed Republic of Crimea. The Crimean Republican enterprises were created on the basis thereof.
At the present moment PJSC “CHERNOMORNEFTEGAZ” manages 13 vessels which perform survey, mining and development of hydrocarbon resources. PJSC “CHERNOMORNEFTEGAZ” performs mining operations on the following 10 mineral deposits on the shelf of Black Sea and Sea of Azov as well as in the land of Crimea: 2 gas condensate deposits (Golitsynskoye and Shtormovoye), 7 gas deposits (Arkhangelskoye, Strelkovoye, Djankoyskoye, Zadornenskoye, East Kazantip, North Bulganak and Odessa deposits) and one oil deposit (Semenovskoye).
In 2013 PJSC “CHERNOMORNEFTEGAZ” mined nearly 1.65 billion cubic meters of natural gas.
In 2014 the enterprise intended to increase the production output to 2 billion cubic meters per year.
In 2013 STATE ENTERPRISE “FEODOSIA ENRERPRISE ON OIL SUPPLY” transshipped nearly 573 thousand tons of imported petrol and 461 thousand tons of diesel fuel. Technological capabilities of the enterprise allow to transship nearly 10-12 million tons of raw oil and oil products per year.
At your request Interlegal will provide additional information about consequences of the imposed sanctions.