COMMENTS ON SCOPE OF SANCTIONS INVOLVING OIL AND GAS EQUIPMENT EXPORTS TO THE SOVIET UNION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R000200370041-0
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 20, 2016
• Document Release Date: June 25, 2007
• Sequence Number: 41
• Content Type: REPORT

Approved For Release 2007/06/25: CIA-RDP84B00049R000200370041-0
SECRET
Comments on Scope of Sanctions Involving Oil and
Gas Equipment Exports to the Soviet Union
We agree with the general assessments presented in the
paper. The sanctions already imposed by the United States on the
sale of equipment to the Soviet Union is likely to delay
compressor deliveries by one to two years beyond the planned 1985
completion date of the pipeline. Because we expect other factors
such as severe environmental conditions to delay construction by
one to two years, late delivery of the compressors would not
represent a bottleneck.
Most European governments would react strongly to attempts
to expand the scope of the sanctions. The French government,
however, has stated that it will not undercut US sanctions and
Alsthom-Atlantique has indicated it does not plan to make the
investment necessary to expand its capability to supply
additional compressor parts. Several other European firms have
already backdated some contracts with Japanese firms in an
attempt to avoid the sanctions.
Effective application of the sanctions to subsidiaries and
licensees would prevent the Soviets from obtaining the GE
compressors and effectively stop development of the project as
now envisioned. The only viable option would be to redesign the
project to use Rolls Royce turbine technology. If the Soviets
moved quickly and sales of Rolls Royce equipment could not be
prevented by US sanctions or cooperation from the UK government,
the project probably could still be completed by 1987/88.
Approved For Release 2007/06/25: CIA-RDP84B00049R000200370041-0