Workers at Gas Plant

EQUIPMENT FOR OIL AND GAS EXPLORATION AND PRODUCTION FOR USE IN RUSSIA

Equipment for oil exploration and production are subject to a license requirement with regard to export and the provision of technical and financial assistance and brokering services. Some exceptions and derogations do apply. The concerned products are indicated in a list.

 

PROHIBITION

EXPORT

It shall be prohibited to sell, supply, transfer or export, directly or indirectly, goods or technology as listed in Annex II, whether or not originating in the Union, to any natural or legal person, entity or body in Russia, including its Exclusive Economic Zone and Continental Shelf , or for use in Russia, including its Exclusive Economic Zone and Continental Shelf.

TECHNICAL ASSISTANCE

It shall be prohibited to:

(a) provide technical assistance (…) related to the goods and technology referred to in paragraph 1 and to the provision, manufacture, maintenance and use of those goods and technology, directly or indirectly to any natural or legal person, entity or body in Russia, or for use in Russia;

BROKERING

It shall be prohibited to (a) provide (…) brokering services related to the goods and technology listed in Annex II and to the provision, manufacture, maintenance and use of those goods and technology, directly or indirectly, to any natural or legal person, entity or body in Russia or for use in Russia.

FINANCIAL ASSISTANCE

It shall be prohibited to provide (…)  (b) financing or financial assistance related to the goods and technology referred to in Annex II, for any sale, supply, transfer or export of those goods and technology, or for the provision of related technical assistance, brokering services or other services, directly or indirectly, to any natural or legal person, entity or body in Russia or for use in Russia.

EXCEPTIONS


The prohibitions (...) shall not apply to the sale, supply, transfer or export of goods or technology, or to the provision of technical or financial assistance, necessary for:
(a) the transport of natural gas and oil, including refined petroleum products, from or through Russia into the Union; or
(b) the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment.


The prohibitions (...) shall not apply to the execution until 17 September 2022 of an obligation arising from a contract concluded before 16 March 2022, or ancillary contracts necessary for the execution of such a contract, provided that the competent authority has been informed at least five working days in advance.

For technical assistance and brokering services

The prohibitions (...) shall not apply to the provision of insurance or reinsurance to any legal person, entity or body that is incorporated or constituted under the law of a Member State with regard to its activities outside the energy sector in Russia.

LICENCE MODALITIES. NOTIFICATION TO AUTHORITIES.

"By way of derogation (...), the competent authorities may authorise, under such conditions as they deem appropriate, the sale, supply, transfer or export and the provision of technical or financial assistance, after having determined that:
(a) it is necessary for ensuring critical energy supply within the Union; or
(b) it is intended for the exclusive use of entities owned, or solely or jointly controlled by a legal person, entity or body which is incorporated or constituted under the law of a Member State."
The Member State or Member States concerned shall inform the other Member States and the Commission of any authorisation granted under paragraph 6 within two weeks of the authorisation.

PRODUCTS CONCERNED

Annex II of EU Regulation 883/2014


This annex shall include certain items suited to the following categories of exploration and production projects in Russia, including its Exclusive Economic Zone and Continental Shelf:

(a) oil exploration and production in waters deeper than 150 metres;

(b) oil exploration and production in the offshore area north of the Arctic Circle; or

(c) projects that have the potential to produce oil from resources located in shale formations by way of hydraulic fracturing; it does not apply to exploration and production through shale formations to locate or extract oil from non-shale reservoirs.

List:

CN code / Description

7304 11 00 Line pipe of a kind used for oil or gas pipelines, seamless, of stainless steel

7304 19 10 Line pipe of a kind used for oil or gas pipelines, seamless, of iron or steel, of an external diameter not exceeding 168,3 mm (excl. products of stainless steel or of cast iron)

7304 19 30 Line pipe of a kind used for oil or gas pipelines, seamless, of iron or steel, of an external diameter exceeding 168,3 mm but not exceeding 406,4 mm (excl. products of stainless steel or of cast iron)

7304 19 90 Line pipe of a kind used for oil or gas pipelines, seamless, of iron or steel, of an external diameter exceeding 406,4 mm (excl. products of stainless steel or of cast iron)

7304 22 00 Drill pipe, seamless, of stainless steel, of a kind used in drilling for oil or gas

7304 23 00 Drill pipe, seamless, of a kind used in drilling for oil or gas, of iron or steel (excl. products of stainless steel or of cast iron)

7304 29 10 Casing and tubing of a kind used for drilling for oil or gas, seamless, of iron or steel, of an external diameter not exceeding 168,3 mm (excl. products of cast iron)

7304 29 30 Casing and tubing of a kind used for drilling for oil or gas, seamless, of iron or steel, of an external diameter exceeding 168,3 mm, but not exceeding 406,4 mm (excl. products of cast iron)

7304 29 90 Casing and tubing of a kind used for drilling for oil or gas, seamless, of iron or steel, of an external diameter exceeding 406,4 mm (excl. products of cast iron)

7305 11 00 Line pipe of a kind used for oil or gas pipelines, having circular cross-sections and an external diameter of exceeding 406,4 mm, of iron or steel, longitudinally submerged arc welded

7305 12 00 Line pipe of a kind used for oil or gas pipelines, having circular cross-sections and an external diameter of exceeding 406,4 mm, of iron or steel, longitudinally arc welded (excl. products longitudinally submerged arc welded)

7305 19 00 Line pipe of a kind used for oil or gas pipelines, having circular cross-sections and an external diameter of exceeding 406,4 mm, of flat-rolled products of iron or steel (excl. products longitudinally arc welded)

7305 20 00 Casing of a kind used in drilling for oil or gas, having circular cross-sections and an external diameter of exceeding 406,4 mm, of flat-rolled products of iron or steel

7306 11 Line pipe of a kind used for oil or gas pipelines, welded, of flat-rolled products of stainless steel, of an external diameter of not exceeding 406,4 mm

7306 19 Line pipe of a kind used for oil or gas pipelines, welded, of flat-rolled products of iron or steel, of an external diameter of not exceeding 406,4 mm (excl. products of stainless steel or of cast iron)

7306 21 00 Casing and tubing of a kind used in drilling for oil or gas, welded, of flat-rolled products of stainless steel, of an external diameter of not exceeding 406,4 mm

7306 29 00 Casing and tubing of a kind used in drilling for oil or gas, welded, of flat-rolled products of iron or steel, of an external diameter of not exceeding 406,4 mm (excl. products of stainless steel or of cast iron)

8207 13 00 Rock-drilling or earth-boring tools, interchangeable, with working parts of sintered metal carbides or cermets

8207 19 10 Rock-drilling or earth-boring tools, interchangeable, with working parts of diamond or agglomerated diamond

ex 8413 50 Reciprocating positive displacement pumps for liquids, power-driven with a maximum flow-rate greater than 18 m3/hour and a maximum outlet pressure greater than 40 bar, specially designed to pump drilling muds and/or cement into oil wells

ex 8413 60 Rotary positive displacement pumps for liquids, power-driven with a maximum flow-rate greater than 18 m3/hour and a maximum outlet pressure greater than 40 bar, specially designed to pump drilling muds and/or cement into oil wells

8413 82 00 Liquid elevators (excl. pumps)

8413 92 00 Parts of liquid elevators, n.e.s.

8430 49 00 Boring or sinking machinery for boring earth or extracting minerals or ores, not self-propelled and not hydraulic (excl. tunnelling machinery and hand-operated tools)

ex 8431 39 00 Parts suitable for use solely or principally with the oil field machinery of heading 8428 

ex 8431 43 00 Parts suitable for use solely or principally with the oil field machinery of subheadings 8430 41 or 8430 49 

ex 8431 49 Parts suitable for use solely or principally with the oil field machinery of heading 8426 , 8429 and 8430 

8705 20 00 Mobile drilling derricks

8905 20 00 Floating or submersible drilling or production platforms

8905 90 10 Sea-going light vessels, fire-floats, floating cranes and other vessels, the navigability of which is subsidiary to their main function (excl. dredgers, floating or submersible drilling or production platforms; fishing vessels and warships)

LEGAL SOURCE

Council Regulation (EU) 833/2014 of 31 July 2014 concerning certain restrictive measures in view of Russia’s actions destabilising the situation in Ukraine. Article 3


The EU Regulation is directly applicable in all EU Member States.

The EU Regulation is based on EU Council Decision 2014/512/CFSP of 31 July 2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.  Article 4