Britain Exempts Egypt's Zohr Gas Field from Sanctions Imposed on Russia
Britain exempts Egypt's Zohr gas field from Russia sanctions until 2027.
SUMMARY
Britain announced the exemption of Egypt's Zohr gas field from its sanctions on Russia, allowing payments and commercial operations until October 2027, despite sanctions imposed on Russian companies Rosneft and Lukoil.
KEY HIGHLIGHTS
- Britain adds Egypt's Zohr gas field to the list of projects exempted from Russia sanctions.
- The license permits payments and commercial operations related to the field until October 2027.
- Zohr is the largest gas field in the Mediterranean and is operated by the Italian company Eni.
CORE SUBJECT
Exemption of Egypt's Zohr Gas Field from British Sanctions on Russia
On Wednesday, Britain added Egypt's Zohr gas field, in which the Russian oil giant Rosneft holds a 30% stake and London-based BP holds a 10% stake, to the list of projects exempted from its sanctions on Russia.
Britain and the United States imposed sanctions on Rosneft and Lukoil, Russia's largest oil producers, in October due to their role in financing Moscow's invasion of Ukraine.
The general license, which was amended on Wednesday, now also permits payments and commercial operations related to the Zohr field until October 2027. BP holds its stake in Zohr alongside the principal shareholder Eni, Rosneft, and other partners.
The license did not specify any reason for the exemption. The British government has not yet responded to a request for comment.
Other projects exempted under the license include major oil and gas projects in Russia, Kazakhstan, and the Caspian Sea region.
The Italian company Eni operates Zohr, which, with estimated reserves of about 30 trillion cubic feet of gas, is the largest gas field in the Mediterranean, despite production having declined from its peak in 2019.
Eni has pledged to invest about eight billion dollars in Egypt and recently launched an exploration campaign in the Mediterranean to increase production.
KEYWORDS
MENTIONED ENTITIES 6
Rosneft
🏛️ OrganizationRussian oil giant holding a 30% stake in the Zohr field
BP
🏛️ OrganizationLondon-based oil company holding a 10% stake in the Zohr field
Eni
🏛️ OrganizationItalian company operating the Zohr gas field
Britain
📍 Location_CountryCountry that imposed the sanctions and issued the license
Russia
📍 Location_CountryCountry sanctioned due to the invasion of Ukraine
United States
📍 Location_CountryImposed sanctions on Rosneft and Lukoil