Maximilian Rockall, UK, and Michelle Glassman Bock, Belgium, Squire Patton Boggs, detail the ongoing impact of the Russia-Ukraine conflict, focusing specifically on the impact it is having on the Asian LNG market. hile energy markets are designed to sustain periods of volatility and uncertainty, the past 24 months have sought to test their elasticity and durability. Even though markets evolve and react to bouts of uncertainty over time, the Russia-Ukraine conflict has impacted not only the European gas market, but has also caused significant upheaval in the Asian gas market. Indeed, its effects are being felt in all major import markets around the world as market players assess their portfolio volumes and contractual flexibility and prices in an effort to develop commercial and legal strategies to best confront the multiple issues arising out of the conflict. While the spotlight has primarily focused on events in European gas markets, serious issues have also arisen for importers in Asia on the back of the conflict in Europe.1
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The impact of the conflict is enhanced by the fact that it arises directly on the heels of the COVID-19 pandemic. Taken together, the following issues can be seen in the Asia Pacific gas markets: � Upstream project operators extricating themselves from certain Russian LNG export facilities.2 � Concern regarding the potential impact of Russia’s Decree No. 416 of 30 June regarding the assignment of the rights and obligations of Sakhalin Energy Investment Company to a newly created Russian entity.3 � Certain Asian banks and financial institutions imposing restrictions on US dollar-denominated payments being made to Russian or Russia-linked banks/companies in connection
