The grandiose project of Rosneft - Vostok Oil, for oil production in the Arctic, got up due to sanctions. About writes The Wall Street Journal, citing people familiar with the situation involved in the company's project, and energy consultants.

The giant Arctic project is facing a shortage of everything from drilling equipment and software to ice-class tankers..

Rosneft intended to spend 10 trillion rubles on the Vostok Oil project to develop oil in the Arctic. The resource potential of the Vostok oil project was light sweet oil, superior in quality to Brent oil, and therefore creating competition for American oil.

" The project was also important to Russian President Vladimir Putin, who wants to improve infrastructure in this remote region and develop a North Sea shipping route to Asian markets..

By the end of the decade, Russia planned to produce 2% of world oil in the Arctic. The Vostok Oil megaproject was also supposed to allow Rosneft to squeeze competitors out of the European energy market..

But Putin ruined everything with his war in Ukraine.

It turned out that the development of the great Russian project relies on Western funds and imported technologies.. At least two important Western financial backers have begun preparing to withdraw from the project, with a total of $180 billion..

The first bell for Rosneft came in June, when commodity trader Trafigura Group, which has a 10% stake in the project, announced that it had frozen investments in Russia and intended to exit Vostok Oil.. The company noted that they do not see the possibility of positive changes in the foreseeable future..

" Global supply chains remain disrupted and the geopolitical situation will continue to be volatile,"

Another global commodity trader, Vitol Group, which has a 5% stake in the project, intends to pull out of its investment soon, according to people familiar with the matter..

In addition, Rosneft signed an agreement with Samsung Heavy Industries Co.. , one of the largest shipbuilders in the world, on work on a fleet of new ice-class tankers for cargo transportation. But Samsung Heavy Industries said that the sanctions against Russia affected the supply of equipment and components for the shipbuilding project..

" One of the world's largest oil producers, but with an economy smaller than Italy's, Russia has long relied on its energy wealth to influence world politics and pressure other countries..

However, the delay of the project and the decline in overall oil production in Russia due to sanctions could undermine the country's economy and its geopolitical position in the long term,"

Russia is now benefiting enormously from high prices, but it is a short-term gain against a long-term loss..

Recall, meanwhile, the European Union, which was seen as a key market for the Arctic project of the Russian Federation, banned the import of Russian oil.