Russia Will Stop Gas Production in Crimea Because of the Trial with Ukraine

Russia will be forced to stop production at the largest gas field in the Crimean shelf zone due to an interstate dispute with Kiev in international arbitration.

The fact that the Russian authorities plan to stop economic activities at the Odessa gas field, which provides the Crimea with almost half of its own gas production, RBC sources in federal and Crimean authorities said. This decision, according to three federal officials, is connected with the international arbitration dispute over the law of the sea, which Ukraine initiated against Russia in September 2016.

Ukraine’s claims in this dispute relate to a wide range of issues related to Russia’s activities in the Black Sea after reunification with the Crimea. In particular, according to Ukrainian President Petro Poroshenko, while extracting gas at the Odessa and other deposits off the coast of the Crimea, Russia “steals” natural resources “on the sea shelf of Ukraine.”

According to sources, according to the Odessa deposit, Kiev’s claims are formulated as follows: Russia conducts unresolved economic activity there. And stopping production is a tactical move, a formal way to remove this claim. At the same time, the question of Ukraine’s return to control over the field, he said, is not worth it.

According to another two federal officials, the Ministry of Foreign Affairs, whose legal department is participating in the dispute on behalf of Russia, has recommended stopping production at the Odessa field.

“The Foreign Ministry decided: if we do not conduct activities there, there will not be any dispute. There is no dispute about belonging, there is a dispute over economic activities in the maritime borders of Ukraine, “the source explained.

Russia will stop gas production in Crimea because of the trial with Ukraine

Recall that Ukraine should by February 19, 2018 submit a memorandum, which will set out the circumstances on which Kiev relies, accusing Russia of violating the 1982 United Nations Convention on the Law of the Sea.


Source: Maritime News of Russia