...Sanctions, Funding Greatest Threat: Fitch Ratings believes that sanctions, and their impact on funding to Russian corporates, pose more of a threat to the Russian oil industry than the current weak oil price. Short-term credit profiles are generally strong, but if funding and access to technology do not improve they will begin to take their toll on the investment needed to maintain production levels. Since March 2014, the US and the EU have launched two rounds of financial and technical (sectoral) sanctions targeted at state-owned and private Russian oil and gas companies. Limited Short-Term Production Impact: Fitch Ratings believes that the current sectoral sanctions do not have a significant impact on the near-term Russian oil and gas production. If they persist, however, the prohibition of the transfer of certain technologies and equipment from the west to Russia, eg, for exploration and production (E&P) from the Arctic oil fields, deep- water offshore and shale oil deposits, will have...
