U.S. and European Union officials are devising what would be the toughest energy sanctions yet on Russia in a move that would prevent U.S.-based energy giants from cooperating with state-owned Russian firms, according to a report.
Under the provisions being discussed, U.S. companies would be barred from participating with joint ventures that assist Russian businesses in developing oil and gas in the Russian Arctic, onshore shale formations and deep-sea waters, according to Bloomberg, which cited three anonymous U.S. officials.
Such a move would hit energy giants like ExxonMobil, which has partnered with state-owned Russian company Rosneft. It would also handcuff Russia’s ability to raise revenues, as its government derives more than half its budget from oil and gas.
The move would be a response to Russian military action in Ukraine. EU officials have been discussing whether to take steps to address the situation in Ukraine, and will meet again Thursday to discuss possible measures, according to Reuters.
