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April 3, 2022updated 01 Apr 2022 4:39pm

Kuwait bars Russian supply chain access

Although no official announcement has been made by KPC, prospective bidders on oil and gas projects have been told to replace Russian vendors with service providers from other countries.

By MEED   

Kuwait Petroleum Corporation has told contractors operating in the country not to use companies based in Russia

National energy holding entity Kuwait Petroleum Corporation (KPC) has told contractors operating in the country not to use Russian vendors in future projects, amid concerns about sanctions and potential disruption to supply chains, according to industry sources.

Although no official announcement has been made by KPC, prospective bidders on oil and gas projects have been told to replace Russian vendors with service providers from other countries.

The ban on the use of Russian vendors comes in the wake of Russia’s military aggression against Ukraine.

“If you submit a bid to KPC or one of its subsidiaries that includes quotations from Russian companies, you will be contacted and told to use another company from a different country,” says one source.

“Even products that are currently listed as approved for use are no longer acceptable.

“Kuwait wants to maintain a good relationship with Russia so no official announcement has been made about the use of Russian vendors,” the source added.

Two subsidiaries of Russian pipe manufacturer TMK Group are among the vendors that contractors in Kuwait have been asked to avoid, according to the sources.

These are Taganrog Metallurgical Works and Sinarsky Pipe Works.

KPC has yet to respond to a request for comment about its use of Russian vendors in projects.

TMK Group has also yet to respond to a request for comment.

Kuwait, like many other countries in the Middle East and North Africa region, is currently under significant pressure from Europe and the US to ramp up oil production and cut economic ties with Russia.

At the same time, it is trying to limit the potential negative political and economic consequences of cutting commercial ties with Russia.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here

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