Most Recent Russian Sanctions Have Big Impact on Energy Companies

In early August, the U.S. Department of Commerce enacted sanctions prohibiting the export of some energy technologies to Russia in response to the crisis in the Ukraine. The most recent sanctions have coupled with earlier restrictions that have altogether made it difficult for energy companies with current or future plans to do business in Russia, and not just the big names in the oil and gas industry. Public Practices partner Aaron Hutman explained to Law360 how the sanctions will have a trickle-down effect.

"When you're talking about sectoral sanctions and export bans on technology, these restrictions start to impact folks in the ecosystem of supporting companies: subcontractors, shippers, oil field services firms,” he said.

Hutman told the website that these companies have to worry about how the sanctions will impact activity with their partners, especially when it comes to transactions.

"They have very nuts-and-bolts questions, with millions or even billions of dollars on the line," he said.