ENERGY companies must be careful to avoid falling foul of EU sanctions against Russia, lawyers have warned.

Ward Hadaway, which has offices in Newcastle, says the full extent of the response to the situation in eastern Ukraine could catch some firms unaware.

Colin Hewitt, Ward Hadaway partner and head of commercial, and director of NOF Energy, the business development organisation for oil, gas, nuclear and offshore renewables, urged caution.

He said: “Most people will be aware of sanctions against the export or import of military and defence equipment and expertise to and from Russia.

“However, the fact these EU-wide sanctions also cover activities in a wide range of additional fields has been less well publicised and may have gone unnoticed by businesses.

“For example, the latest Government guidance is that export licences are required for sending certain energy-related technology and equipment to Russia with licences unlikely to be granted for any projects involving deep water oil exploration and production, Arctic oil exploration and production, or shale oil projects in Russia.

"With licences also a prerequisite for providing technical assistance, brokering services and the supply, transfer or export of these technologies to Russia or for use in Russia, it’s clear these restrictions have the potential to impact on a wide range of businesses.

“The North’s acknowledged strengths in the energy sector mean the region is likely to be affected by the restrictions and businesses need to tread very carefully when it comes to balancing their need to fulfill contracts and make a living with the requirement to comply with the agreed sanctions.”