In Geopolitics Today: Friday, September 16th
The United States Further Sanctions Russia, Iraq’s Oil Exports from Basra Halted due to Spill, and other stories.
The United States Further Sanctions Russia
The US has imposed another round of sanctions on a list of Russian officials and companies, ramping up pressure in an attempt to crush Russia’s defence sector. Sanctions targeted officials overseeing Russian securities markets, fighter groups, pro-Russian officials in occupied parts of Ukraine, and a children's rights official.
Most critically to Russia’s defence sector, sanctions were applied on Russian space, computing and technology firms in an effort to cripple Russia’s technology development and stifle its ability to modernise its military. The US also sought to cut off Russian high-technology entities from the global market, depriving them of capital and components from abroad. Other companies sanctioned were involved with engine technologies, semiconductor development, nanotechnologies, and quantum computing.
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Germany Seizes Rosneft’s Refineries
In a bid to secure energy supplies, Berlin has taken control of the facilities owned and operated by the Russian oil firm Rosneft in Germany. Rosneft’s German subsidiaries, which account for about 12 percent of all oil refining capacity in the country, have now been placed under the trusteeship of the Federal Network Agency.
The move puts Rosneft’s stakes in three German refineries — PCK in Schwedt, MiRo in Karlsruhe and Bayernoil in Vohburg — under the the trusteeship’s control. By taking control of the sites, the German authorities can then run refining operations using crude from countries other than Russia. Rosneft accounts for about 12 per cent of Germany’s oil refining capacity, making it one of the largest oil processing companies in the country, the ministry said.
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Qatar Articulates its Foreign Policy
Qatar is a small country that often plays an outsized role in international affairs. In a recent interview with the French news outlet Le Point, Qatar’s leader, the Emir Sheikh Tamim bin Hamad Al Thani, outlined his country’s approach to foreign policy as one which aims to bring together different points of view.
Qatar has played a key role in negotiations between the United States and the Taliban, hosting several rounds of talks in Doha. The Gulf nation has also helped with evacuations from the Afghan capital, Kabul, when the US withdrew following the Taliban’s takeover of the country. More recently, has also hosted indirect talks between Washington and Tehran aimed at restoring the 2015 nuclear deal. The Emir described his country’s role in world affairs as that of a facilitator.
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Iraq’s Oil Exports from Basra Halted due to Spill
Oil exports from Iraq’s Basra port have stopped after an oil spill has reportedly halted all operations. While exports from Iraq's Basra oil terminal are being gradually resumed, it remains unclear for how long operations will be reduced.
The Basra oil terminal can process 3.3 million barrels of crude oil per day and allows for the export of up to 1.8 million barrels per day. However, with reduced operationality the number of barrels exported to global energy markets will be reduced, lowering supply. The spill drove up prices on the prospect of lower global crude supply.