The United States announced a new wave of stringent sanctions on Russia’s energy sector on Friday, targeting more than 180 oil tankers and major oil companies, just days before President Joe Biden’s term ends.
These measures, described as the most extensive to date, aim to cripple Russia’s ability to generate revenue from oil exports and are expected to cost the country billions of dollars monthly.
The US Treasury Department confirmed the sanctions focus on the Russian “shadow fleet,” a network of tankers used to bypass previous restrictions. Of the 183 targeted vessels, many fly under flags from countries like Barbados and Panama. The sanctions also extend to Russian oil giants Gazprom Neft and Surgutneftegaz, alongside more than 20 of their subsidiaries.
British authorities have also implemented similar sanctions, aligning with the G7’s commitment to curtail Russian energy revenue. “The United States is taking comprehensive action against Russia’s primary source of revenue to fund its brutal and illegal war against Ukraine,” US Treasury Secretary Janet Yellen stated. She emphasized that the sanctions increase risks associated with Russian oil trade, including shipping and financial support.
A senior Biden administration official predicted that these sanctions would cost Russia billions of dollars each month. “Russia will try to circumvent sanctions, but it will come at a significant cost,” the official added.
Reports of the sanctions caused a global spike in oil prices, with crude surging above $80 per barrel. These measures are expected to disrupt Russian oil exports to major buyers like India and China, creating significant uncertainty in global markets.
The sanctions come as the United States and its allies intensify economic pressure on Moscow in response to its ongoing war in Ukraine. By targeting Russia’s energy sector, which remains a cornerstone of its economy, the West aims to weaken its ability to sustain the conflict.