New US Anti-Russia Sanctions Might Harm Global Energy Industry, US Jobs

MOSCOW (Sputnik) — On June 14, the Senate, the upper chamber of the US Congress, voted to approve the expansion of the existing sanctions against Moscow and limit US President Donald Trump’s ability to lift the restrictions. The sanctions restrict US individuals and entities from business operations with deepwater, Arctic offshore or shale projects involving Russian companies.

The Financial Times newspaper reported late on Tuesday citing the executives and representatives of the energy industry that the restrictions can result in the decrease of the US companies’ competitiveness as well as the efficiency of oil and gas production not only in Russia but also in other countries.

According to the news outlet, on Monday, Leslie Beyer, the president of the US Petroleum Equipment and Services Association, warned Kevin McCarthy, the Republican majority leader in the lower chamber, the House of Representatives, that the new sanctions could damage the US companies on the world markets as well as cause "job losses and economic contraction in… American communities."

Apart from this, Jack Gerard, the president of industry group the American Petroleum Institute, on the same day urged the House to "make critical modifications to avoid these unintended consequences," the newspaper added.

The US firms hope that the House will revise the proposed restrictions to decrease their potential effect on the economy, the outlet also reported.

The new US sanctions, seen as targeting the Russian Nord Stream 2 gas pipeline to Europe, was criticized by both Germany and Austria which had described the restrictions as a threat to the EU energy security.