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OIL AND GAS
U.S. calls for comprehensive solution to Chinese oil rig row
by Daniel J. Graeber
Washington (UPI) Jul 17, 2013


Kremlin brushes off U.S. sanctions on energy sector
Moscow (UPI) Jul 17, 2013 - The Kremlin is taking a "placid" posture over U.S. sanctions that reach into the energy sector, Russia's deputy foreign minister said Thursday.

Washington rolled out a new set of sanctions against Russian companies and financial institutions in response to ongoing skirmishes in Ukraine, a former Soviet Republic.

Skirmishes in Ukraine stem from Russia's frustration over the shift in the regional balance of power that resulted from Kiev's tilt toward the European Union.

Russian Deputy Foreign Minister Sergei Ryabkov said U.S. actions against Russia would hurt Washington's foreign political and economic efforts.

"There's no hustle, our stance on this [new U.S. sanctions] is placid and balanced," he said.

Sanctions extend to the financial arm of Russian natural gas company Gazprom along with Russian energy companies Novatek and Rosneft.

U.S. Undersecretary for Terrorism and Financial Intelligence David Cohen said the sanctions were enacted because "Russia has failed to meet the basic standards of international conduct."

The row between China and Vietnam over an oil rig in contested waters highlights the need to find a solution in international law, the U.S. government said.

China National Petroleum Corp. announced it completed drilling and exploration activity in waters of the South China Sea disputed with Vietnam and pulled its rig out of the area.

The May deployment of the CNPC rig sparked international concerns over China's claims to regional maritime territory. The U.S. government said it had no stance on territorial jurisdiction, but viewed Chinese actions as provocative.

U.S. State Department spokeswoman Jen Psaki said the government welcomed the announcement the rig had left controversial waters.

"The oil rig incident has highlighted the need for claimants to clarify their claims in accordance with international law to reach a shared understanding on appropriate behavior and activities in disputed areas," she told reporters during her regular press briefing Wednesday.

China and Vietnam made competing claims over the territory. Vietnam accused China of harassing its vessels in the region, though Beijing countered the government in Hanoi was playing the victim.

Though there is a long diplomatic track record on the issue, Psaki said she wasn't going to speculate on China's reasons for redeploying the rig.

"We have expressed our same concerns publicly as we have privately," she added.

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