The world’s largest oil companies from Royal Dutch Shell Plc to Exxon Mobil Corp. are likely to reassess deals to drill in Ukraine where political crisis is threatening a promising source of new profits as well as the country’s drive for energy independence.
President Dmitry Medvedev agreed to spend $40 billion to cement Moscow’s ties with Kiev after five years of tension by cutting gas prices to Ukraine in return for an extended Russian naval presence in the Black Sea.
President Dmitry Medvedev awarded Ukraine $40 billion in natural-gas subsidies in return for a new lease on the Russian Black Sea Fleet’s naval base as the Kremlin strengthens ties with its neighbor after five years of tension.
Russian Prime Minister Vladimir Putin said the world’s largest natural gas exporter will study building a plant to liquefy natural gas on the Black Sea as part of the country’s South Stream project to ship fuel to Europe.
OAO Gazprom, the world’s largest producer of natural gas, said its tax burden may rise by 200 billion rubles ($6.7 billion) in the next three years even as Prime Minister Vladimir Putin pushes for increased output.
Russian Prime Minister Vladimir Putin proposed uniting state-run OAO Gazprom and Ukraine’s state energy company, NAK Naftogaz Ukrainy, while seeking closer political and economic ties with the neighboring country.
Russia will switch on Iran’s first nuclear power plant tomorrow as the government seeks to bolster its global influence by acting as a power broker between the U.S. and its European allies and the Persian Gulf nation.