The UK is letting Egypt’s Zohr gas field avoid sanctions against Russian energy. Even with restrictions from the war in Ukraine, operations can continue as usual. This matters for the Mediterranean gas situation because Russia’s Rosneft owns 30% of the project, and BP, a British company, has a 10% stake.
Zohr is now on a short list of projects exempt from the UK’s new sanctions on Russian energy companies. Payments and other business activities can continue until 2027. Italy’s Eni runs the field, with Rosneft and BP as partners.
This exemption comes after the UK and US imposed sanctions on Rosneft and Lukoil, another Russian energy company, in October. Reuters reported they were targeted for supporting Moscow’s military in Ukraine. The sanctions affect loans, investments, exports, freeze assets, and ban travel for some involved.
The new license update allows companies working with Zohr to keep making approved payments and operating until October 2027. BP still holds its 10%, along with Eni, Rosneft, and others. Eni remains the main player.
The UK hasn’t explained exactly why Zohr is getting this break. The license also covers other major projects in Russia, Kazakhstan, and the Caspian area. It seems they are trying to balance putting pressure on Moscow with keeping the world’s energy supply steady.
The US did something similar in October, giving the go-ahead for work to continue on energy projects in Kazakhstan (Tengizchevroil, where Lukoil is involved) and the Caspian Pipeline Consortium (which runs through Russia and Kazakhstan and has Rosneft as a part-owner).
Gowling WLG, an international law firm, explained these licenses act as exceptions, allowing projects with ties to sanctioned entities to continue under certain rules. This helps companies stay legal without disrupting energy projects entirely.
Zohr is important for Egypt’s energy situation. Eni runs it, and it is the biggest gas field in the Mediterranean, with about 30 trillion cubic feet of reserves. However, it is producing less gas than in 2019. Even though production is down, Eni says they remain committed to Zohr and Egypt’s energy sector. They have promised to spend around $8 billion in the country and recently started new drilling in the Mediterranean to boost gas production.
The UK’s decision gives Zohr stability as sanctions against Russian energy companies intensify and global conditions shift. This break gives Egypt room to keep developing its key gas source, even as Moscow faces pressure on its energy power worldwide.
