Spain’s Repsol has established a joint venture with Gazprom Neft after selling a 25 per cent stake in its Evrotek-Yugra project of seven oil blocks in western Siberia to the Russian oil company. The fields, owned by Repsol, will be managed jointly by the two companies. Gazprom Neft, a subsidiary of Russian state-owned gas monopoly Gazprom, has an option to increase its stake in the venture to 50 per cent, according to Financial Times.

The deal is the latest agreement between Russian and European oil and gas companies despite western sanctions against the country’s energy sector.

EU companies appear to have suffered less than their US rivals in Russia since sanctions were imposed by the EU and the US following Moscow’s invasion of Crimea in 2014.

“Alongside strategically expanding our resource base, we also have the opportunity to share our geological prospecting skills and know-how with one of the largest oil companies in Europe,” said Alexander Dyukov, Gazprom Neft chief executive.

“Our combined geological exploration expertise will ensure the planned works will be executed with the maximum efficiency.” The companies did not provide any financial details of the agreement. The Ouryinskoye field, which is covered by the joint venture, has recoverable reserves of 33.8 million tonnes of oil.