Russia tells Ukraine: stop Black Sea oil drilling

World

Russia demanded on Friday that Ukraine halt oil exploration in parts of the Black Sea, saying the work was illegal because a territorial dispute over the area had not been resolved.

The activities of Ukrainian energy companies in certain areas of the sea “are of an illegal nature and must be halted,” Russia’s foreign ministry said in a statement sent to reporters. “The areas in question are the subject of a negotiations process between the Russian Federation and Ukraine on the demarcation of the continental shelf and exclusive economic zones in the Black Sea,” it said.

Political ties between Moscow and Kiev are strained because of Russian opposition to Ukraine’s NATO membership bid and disputes over the price at which Russia sells gas to its ex-Soviet neighbor. The foreign ministry statement did not say if the Russian objections applied to US firm Vanco Energy, which has been granted a contract by Ukraine to develop an area of just under 30,000 square km at the northern end of the Black Sea.

Vanco Energy has said it would spend as much as $3 billion on the project, starting with a $190 million investment in the first three years. Moscow and Kiev are in dispute over territorial waters around the Kerch Strait, a waterway at the northern end of the Black Sea which separates Ukraine’s CrimeaPeninsula from the coast of southern Russia. (Reuters)

ADVERTISEMENT

Business, consumer confidence improves - Századvég Analysis

Business, consumer confidence improves - Századvég

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New managing director at the helm of Wolt Hungary Appointments

New managing director at the helm of Wolt Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.