Oil and gas companies face an increasing risk of government investigations and significant financial penalties if they do not take appropriate steps to comply with international sanctions measures.
Nord Stream 2
Several gas-producing provinces in Europe have confirmed a worrying trend.
In February 2019, the EU amended the Gas Directive to extend its scope to apply to pipelines from third countries to the EU. The proposal has primarily targeted Nord Stream 2, a pipeline which would bring Russian gas to Germany bypassing Ukraine and other former Soviet states. The pipeline has been under construction across the Baltic Sea since August 2018.
For our European neighbours, there are other big issues around apart from Brexit.
President Vladimir Putin has said that Russian gas supplies to Europe via Ukraine may continue even after the launch of a prospective Germany-bound pipeline under the Baltic Sea.
A production cap on the earthquake-stricken Groningen gas field proves the need for Europe’s controversial Nordstream 2 pipeline, according to a leading analyst.
Shell is among a group of five energy companies who have agreed to stump up funding for the Nord Stream 2 project.
US Vice President Joe Biden has said the US believes the Nord Stream 2 pipeline is a "bad deal" for Europe.
A consortium of Gazprom and five European allies has withdrawn its application to set up a Polish joint venture to build the Nord Stream 2 pipelines in the Baltic Sea.