Western sanctions and the exit of international oil and engineering companies from Russia following Putin’s invasion of Ukraine will slow the growth of Russia’s energy industry. Russia’s claims that it can provide all the equipment needed for domestic gas networks come amid a row with the West. “It is important to upgrade our capabilities by replacing foreign exploration, drilling and offshore equipment, as well as accelerating work on our own medium- and large-capacity LNG equipment,” Russian Trade and Industry Minister Denis Manturov said.

Russia is capable of building all the necessary equipment to expand its domestic gasification network on its own, Russian Trade and Industry Minister Denis Madurov said on Friday.

“We will be able to provide ourselves with all the technological equipment and pipelines for the gasification of the entire country,” the minister said during a speech in the Russian parliament, as reported by Russian news agency TASS. “It is important to upgrade our capabilities by replacing foreign exploration, drilling and offshore equipment, as well as speeding up work on our own medium- and large-capacity LNG equipment,” Manturov was quoted as saying. Russia will also speed up the timetable for testing and starting mass production of large gas turbines, said the minister, who was just promoted to also serve as Russia’s deputy prime minister. Western sanctions and the exit of international oil and engineering companies from Russia following Putin’s invasion of Ukraine will slow the growth of Russia’s energy industry because Moscow can no longer rely on Western equipment, analysts say. Russia’s claims that it can provide all the equipment needed for domestic gas networks come amid a row with the West in which Moscow cut deliveries to Europe in mid-June. Russia said a gas turbine for a Nord Stream compressor station being repaired by Siemens at a facility in Canada could not be returned because of Western sanctions on Russia. European leaders, including those in Germany and Italy – whose countries are most affected by Gazprom’s supply cuts – have said the Russian excuses are “lies” and that the lower gas supply was a politically motivated decision. Earlier this week, Canada agreed to return the Gazprom turbine that Siemens Energy sent to a plant in the North American country for repairs earlier this year. The decision comes after calls from Germany to return the turbine, so according to German Economy Minister Robert Habeck, Russia has no justification to keep gas flows along Nord Stream at 40% of the pipeline’s capacity.
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