Crimea sanctions highlight compliance risk in Russian energy sector

Ben Davis and Howard Mendelsohn
Published by The Camstoll Group, June 2, 2014

On May 12, 2014, the European Union added two Crimea-based energy firms to its Russia sanctions list: Chernomorneftegaz and Feodosia Enterprise (aka Feodosia Oil Product Supply Company or “Feodosia”). The sanctions were levied in response to the expropriation of the companies by the separatist Crimean government in March 2014. To date, the United States and Canada have sanctioned Chernomorneftegaz, but not Feodosia.

Both companies were previously controlled by the Ukrainian government...