The push to develop hydrocarbons in the Arctic and tight oil onshore continues, but political tension and other risks create future uncertainty. For oil and gas companies hoping to strike and successfully develop massive hydrocarbon finds in Russia, adjusting plans for the political wildcard has become a requirement. The outlook can appear sunny one day, and then actions of the powers that be can strike, bringing rainy days and clouding the future. Russia was dealt a blow when the U.S. and EU imposed sanctions that shut off the flow of energy technology and financial backing in response to Russia's actions threatening Ukraine's sovereignty and territorial integrity. Despite a cease-fire and a peace deal struck between Ukraine and Russia, the EU - followed by the U.S. whose president said "we have yet to see conclusive evidence that Russia has ceased its efforts to destabilize Ukraine" - deepened the sanctions in September. The restrictions include prohibiting the export of goods, services and technology in support of E&P for Russian deepwater, Arctic offshore, or shale projects to Gazprom, Gazprom Neft, Lukoil, Surgutneftegas and Rosneft. The mandate gave U.S. persons until Sept. 26 to "wind down applicable transactions."
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