Russian oil will survive sanctions but not thrive

Subject Impact of old and new sanctions on Russia's oil industry Significance New US sanctions make it harder for President Donald Trump to relax or reverse sanctions on Russia's energy sector but do not radically change existing restrictions. The Russian oil industry has responded since 2014 by seeking alternative sources of capital. Gas firms have been targeted less by restrictions, although the new US bill singles out Gazprom's Nord Stream 2 project for potential punitive action. Impacts Sanctions will not affect Russia's current position as the world's top oil producer. Long-term production will be depressed if ageing fields cannot be replaced with new fields requiring high-tech development. Kazakhstan is keen to stress that the oil pipeline from its Tengiz field to the Russian Black Sea is exempt from sanctions.

Significance Canada’s Liberal Prime Minister Justin Trudeau is preparing to welcome a more predictable and stable partner in Biden than outgoing Republican President Donald Trump. However, Biden is also expected quickly to cancel the Keystone XL pipeline, cutting another lifeline to Canada’s oil industry and creating some strain in Canada-US ties. Impacts Improved Canada-US ties will persist even if Trudeau loses the next federal election to Conservative Erin O’Toole. Canada will re-engage militarily with UN peacekeeping and NATO deployments. Trudeau will encourage Biden to end US prosecution of Meng Wanzhou, allowing Canada to release her; Biden may agree. Canada’s border with the United States will open in stages as COVID-19 recedes. Ottawa will push Biden to end ‘Buy American’ procurement policies, with little success.


Significance Despite this, Biden indicated no change in the US position after a bilateral agreement with Germany effectively paved the way to completing the pipeline. Technically, Nord Stream 2 could begin partially operating in October. Impacts The recent spike in European gas prices to levels unseen since 2008 reinforces the case for Nord Stream 2's speedy completion. EU energy diversification, with a focus on renewables, poses long-term questions about the viability of both the Nord Stream pipelines. From October, Hungary will switch to Gazprom gas supplied via Serbia and Austria instead of through Ukrainian pipelines.


Significance Gazprom held its first auctions, for Nord Stream gas, on September 7-10. Auctions represent a departure in Gazprom's sales strategy, and suggest that it is exploring alternatives to oil indexation and long-term contracts. Auction sales would allow Gazprom to sell more gas from the currently under-utilised Nord Stream pipeline, and could form the basis for gas sales from its proposed expansion. Both Nord Stream auctions sales and expansion would advance Gazprom's objective of bypassing Ukraine for gas transit to Europe. Impacts Auction sales would meet CEE states' preference for sourcing Russian gas through Western intermediaries. However, any loss of gas transit via Ukraine will raise concerns in some CEE states and Ukraine on transit fee and strategic grounds. By helping to meet EU TPA requirements, Nord Stream auction sales could reduce regulatory concerns about the line's expansion. EU and US sanctions against Russia do not prohibit Western company involvement in pipeline construction for gas transmission.


Significance Khalilzad's determined shuttle diplomacy has been thrown into doubt by reports that President Donald Trump wants to halve the 14,000-strong US contingent in Afghanistan. A troop drawdown in Afghanistan would reverse the policy set out in a 2017 strategy for robust engagement influenced by Defense Secretary James Mattis, who announced his resignation on December 20 and left office on December 31. Impacts Erratic White House policy-making will undermine Washington's credibility as a long-term Afghan ally and mentor. Other countries contributing troops to NATO's Afghan mission may reduce their contingents accordingly. Russia will ramp up its own diplomatic effort, although it too is seen as partisan in the Afghan conflict.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ronit Yitshaki ◽  
Eli Gimmon ◽  
Susanna Khavul

Purpose This study aims to examine the extent to which board size, the use of power by venture capital investors and entrepreneurs’ interpersonal tactics such as persuasion to sway board decisions, influence the long-term survival of start-ups. Design/methodology/approach This study used a mixed-methods approach. The quantitative part is based on data collected from 179 chief executive officers (CEOs) of high-tech start-ups community financed by venture capitalists (VCs) in Israel of which 59 did not survive. To achieve a better understanding of these findings, semi-structured interviews with 12 entrepreneurs were conducted. Findings Smaller boards were positively associated with venture survival. The use of power by VC investors positively influenced start-up survival. CEO persuasion had a negative effect on venture survival; however, its interaction with board size suggests that it had a lesser effect on very small boards. Practical implications Although investors’ control over decision-making contributes to long-term survival, entrepreneurs should be aware of the possible detrimental effects of exercising a high level of persuasion in board processes. The findings also suggest that a small board size is preferable for start-up survival. Originality/value Exploring the effect of board processes on venture survival is considered complex. A unique sample of high-technology start-ups consisting of both surviving and failed start-ups was analyzed to explore the effects of persuasion and power in board processes.


Significance Just as Zelensky's July 2019 phone call with then President Donald Trump was fading from memory, Biden's green light for the Nord Stream 2 pipeline project, in a deal with Germany, has undermined Ukraine's confidence in both countries. Kyiv is now seeking to make its own voice heard and assert its rights as a significant player rather than a pawn in international affairs. Impacts Kyiv will present the Biden summit as an achievement, whatever the outcome, although this is unlikely to affect Zelensky's ratings. The opposition will place the blame for Nord Stream 2 squarely on the Zelensky administration. Biden's decisions on Afghanistan will increase Ukrainian worries about US foreign policy commitments.


foresight ◽  
2017 ◽  
Vol 19 (2) ◽  
pp. 218-250 ◽  
Author(s):  
Ozcan Saritas ◽  
Ilya Kuzminov

Purpose This paper aims to analyse the mainstream and emerging global challenges and trends in the global agriculture sector. The analysis leads to a discussion on the present state of the Russian agroindustry and possible future strategies for adaptation in the context of the rapidly changing global environment. Design/methodology/approach The design of this study is based on the application of the core methods of Foresight. First, a trend analysis is undertaken using reviews and expert methods. Trends identified are mapped using a social, technological, economic, environmental, political and value (STEEPV) framework to ensure that a broad range of trends are covered, which may be stemming from various factors affecting the agriculture sector. The analysis of the big picture of global trends and challenges, interacting with country-specific structural factors, translates are translated into the opportunities and threats, which will in turn help to develop possible strategies for adaptation. Findings This study develops two adaptive strategies for the development of the Russian agroindustry that are feasible in different short- and long–term time horizons. The first strategy is considered to be the most likely choice for the period before 2020. It includes radical imports’ substitution (of commodities as well as machinery and high-tech components) for ensuring national food security with inevitable temporary setbacks in efficiency and labour productivity. The second strategy, which becomes feasible after 2020, considers re-integrating Russia into global supply chains and expanding commodities exports (volumes and nomenclature) based on full-scale technological modernization with the use of international capital. Research limitations/implications The study design is based on the assumption that Russia’s position as a country, which is highly self-sufficient on basic agricultural products and large exporter of crop commodities and fertilizers, will remain unchanged in the horizon of at least 20 years. However, long-term forecasts should also scrutinize the possibility of radical structural changes. Therefore, future research should concentrate on wild cards that can completely disrupt and transform the Russian agriculture industry and as well as the whole economy. Practical implications This paper suggests a number of recommendations on national science and technology policy for the three main industries of the Russian agricultural sector: crop husbandry, animal breeding and food processing (the fisheries sector is excluded from the scope of this paper). In addition, this paper proposes a number of measures towards alleviating the institutional barriers to raise the investment attractiveness of the sector. Originality/value The novelty of this paper lies in the originality of the research topic and methodology. The Russian agricultural sector has rarely been studied in the context of global agricultural challenges and threats taken on the highest level of aggregation beyond commodity market analysis or agro-climatic and logistics factors. There are few or no studies that lay out a map of possible long-term strategies of Russian agroindustry adaptive development. The Foresight methodology applied in this study is customized to better fit the practical purposes of the study.


Significance While many industries have been transformed by the development of such new digital technologies as data analytics and artificial intelligence, the oil and gas industry has been a laggard. That is starting to change as the industry looks to new technologies to help it become more efficient and productive. The oil price downturn, which has put a premium on cost cutting, has accelerated the move to take up new technologies. The opportunity is significant, with a World Economic Forum report (pdf) from earlier this year claiming that the industry could generate 1 trillion dollars in added value over the next decade by embracing digitisation. Impacts Local communities in oil-producing regions face disruption as digitisation reduces employment and puts a premium on high-tech skills. The oil industry will be a significant new market for tech firms working on artificial intelligence, machine learning and automation. Embracing new technologies could help the oil industry attract younger workers, a key challenge as a wave of older talent retires.


Significance The Keystone XL extension is a major new proposed oil pipeline project, with implications for US-Canada trade (at a time of uncertainty surrounding NAFTA negotiations), Canadian oil producers, and the global oil market. Its prospects suffered a blow in November when Nebraska state regulators rejected the pipeline builder TransCanada’s preferred route, opting instead for a lengthier path through the state. Impacts Nebraska’s economy could lose out on millions of dollars in revenue if Keystone XL does not go ahead. US President Donald Trump could be hurt politically if a project that he so publicly backed falls through. Canadian Prime Minister Justin Trudeau faces provincial and local opposition to new pipeline projects.


2015 ◽  
Vol 28 (1) ◽  
pp. 141-159 ◽  
Author(s):  
Paramaporn Thaichon ◽  
Charles Jebarajakirthy

Purpose – The purpose of this paper is to examine the influence of quality perception on customers’ repurchase behaviour in home internet services. Specifically, it was found that information quality, and privacy affected customers’ commitment and perceived value which were directly related to customer behavioural loyalty. Design/methodology/approach – In order to achieve the research objectives, a model is proposed. The literature review and formulation of hypotheses related to each construct are then discussed. An online survey was conducted. The final usable sample size was 2,059. Findings – Information quality was a stronger determinant of commitment and value when compared with privacy. The positive indirect effects of information quality and privacy on behavioural loyalty were also confirmed. Originality/value – The research provides practical implications which can be used to design effective marketing strategies to retain customers in the residential internet market. Moreover, current issues of high-customer churn rate can be resolved. In general, the study confirms that putting customers’ privacy in the heart of company operations is critical for an internet service provider’s success and long-term sustainability.


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