US sanctions on Russian helium are just hot air

The United Sates Congress has put forward legisaltion that wants sanctions to be imposed on Russian helium exports . The objective is to prevent Moscow from becoming one of the World's top three producers . Now Russia is  actively increasing production of this strategic resource, which is vitally important for  the world's high-tech industries. According to all forecasts, Russia has the capability take up  around half of the world market by 2030.
Now what exactly does this mean,can the US really do anything worthwhile and how will it effect the world market?

As usual the US which feels it is the major decision maker on who gets to do what in the world has decided it wants to stop Russia's moves to develop its helium production According to the US politicians  "It is imperative that we impose limitations."
The letter regarding the latest sanctions was signed by Democratic Senators Robert Casey and John Fetterman of Pennsylvania, as well as several members of the House of Representatives. The letter was addressed to Secretary of State Antony Blinken, Treasury and Commerce Secretaries Janet Yellen and Gina Raimondo.
"In a few years, Russia's share of global helium production could grow from two percent to thirty percent," according to a message quoted by Politico. "Moscow will likely gain a foothold in the global market if we and our allies do not intervene."
Obviously the US does not like the idea or the fact that other countries have an control vital resources that are beyond the ability of the US to manuipulate and control.
Now before I continue I would like to make an appeal,if you like and enjoy my videos you can help me fund the channel and my websited sco brics insight .com and to further develop it. You can do this by making a small donation which you can do by clicking on the thanks button at the bottom of the video screen. Everybody who donates does get a personal thank you from me.
The US Geological Survey (USGS) reports that 170 million cubic metres of helium were produced in 2023, an eight percent increase over 2022. The United States is the largest supplier, accounting for 46% (79 million cubic metres), while Qatar and Algeria are in second and third place, with 66 and ten million cubic metres, respectively.

Russia is in fourth place with an estimated eight million. However, the rate of development is unparalleled.
In the global market, Russia and Qatar accounted for over 80% of growth last year, with a combined total of ten million cubic metres.
It is worth noting that approximately one-third of the world's helium supply originates from an underground reservoir in Texas. This reservoir was created as a strategic reserve for inflating airships back in the 1920's .Then in the 1990s, there was a decline in demand for helium, but  since then there has followed by a period of rapid growth as a result of the rapid development of technology.
This gas is used in the high-tech sector, where it is employed in the production of LCD displays, optical fibres, superconductors, medical equipment and breathing mixtures. Moreover, helium is employed in the nuclear industry for the manufacture of components for mobile phones, tablets and space technologies.
Helium is an inert gas, meaning it does not react with other substances. This is a crucial quality for manufacturers of electronic components, as it prevents other gases or contaminants from entering the microchip. Helium is also highly efficient at absorbing heat, making it an ideal choice for cooling applications. "Due to its capacity to cool to the level of a superconductor, it is utilised in MRI scanners," states Pavel Sevostyanov, Associate Professor of the Department of Political Analysis and Socio-psychological Processes at the Russian Economic University. G.V. Plekhanov.
Russia has significant potential for further helium production. The Trofimuk Institute of Oil and Gas Geology and Geophysics (INGG) of the Siberian Branch of the Russian Academy of Sciences forecasts that production could reach 75 million cubic metres by 2030. This is a realistic projection.
At present, the two leading enterprises are the Orenburg Helium Plant and the Amur Gas Processing Plant.
In 2022, Gazprom increased the corresponding capacity eightfold. Two of the three units at the Amur GPP, one of the company's most significant infrastructure projects in the Far East, have been launched and are fully operational. Furthermore, the GPP has a comprehensive production and sales infrastructure in place, encompassing production, processing, liquefaction, and transportation to domestic and international markets.
In 2022, the Irkutsk Oil Company (INK) initiated the operation of a pilot helium plant at the Yaraktinskoye oil and gas condensate field. This enterprise has the capacity to reach seven and a half million cubic metres per year. The location is ideal for deliveries to both the European and Far Eastern markets.
The West's aggressive policy towards the oil and gas sector provides further impetus for production and exports. Due to sanctions, some LNG plants will likely be re-equipped to process second-order raw materials, including helium, according to Pavel Maryshev, a member of the expert council at the Russian Gas Society.
"Our resource base allows us to maintain leading positions. Our effective technologies allow us to develop the industry independently of foreign know-how and equipment," the analyst emphasises.
Moscow's ambitious plans are a cause for concern for the current market leader. The EU has already imposed sanctions, concerned that helium may become a new instrument of Russia's geopolitical influence, comparable to oil and gas. From the perspective of the United States, this is also a matter of intensifying competition.
"The United States has historically been the largest producer of helium, but it is now more dependent on imports, while Russia is rapidly increasing capacity with projects like the Amur Gas Processing Plant," says Vitaly Krivtsov, CEO of the ANO Center for the Implementation of National Projects.

In the 1990s, there was a decline in demand for helium, but this was followed by a period of rapid growth due to the pace of technological advancement. Helium is a crucial input for the production of LCD displays, optical fibre, superconductors and medical equipment. Additionally, helium is used in the nuclear and space industries, medicine, the production of parts for mobile phones and tablets.
"The potential for growth is significant." "It is therefore important for Washington to limit our potential in this market," states Ivan Andrievsky, first vice president of the Russian Union of Engineers.
There are promising prospects for the creation of a BRICS  interstate raw materials alliances, as suggested by Vladimir Putin at a meeting of the government in September. Prime Minister Mikhail Mishustin has been tasked with spearheading this initiative. The Political scientist and economic analyst Alexander Mishchenkov is confident that in partnership with the BRICS countries, Russia can become the main supplier of helium for the growing markets of China and India.
By assuming a leading role, Russia will reinforce its economic ties with the Asia-Pacific region and China, which are home to significant industrial potential and the world's major electronics manufacturers. Furthermore, Western sanctions are unlikely to have a significant impact on the industry, according to Maryshev.
Analysts at IDTechEx anticipate that global demand for helium will nearly double by 2035, reaching 322 million cubic metres. First and foremost, this is due to the development of electronics. As highlighted in the IDTechEx report, global supply is set to expand, with Russia and Qatar playing a pivotal role.