The United States and the United Kingdom announced a new wave of sanctions against Russia, focusing on the energy sector – the country's primary revenue sources. The measures include blocking major oil companies, sanctioning more than 180 Russian oil-carrying vessels and sanctioning Russia-based oilfield service providers, IPN reports.
“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” said Secretary of the Treasury Janet L. Yellen. She noted that this action builds on the focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including through the G7+ price cap launched in 2022.
What do the new sanctions entail?
The sanctions announced by the U.S. and the United Kingdom, in an official statement of the U.S. Department of the Treasury, target a series of aspects of the Russian energy industry:
Blocking oil majors: Gazprom Neft and Surgutneftegas, two of the largest players in the Russian oil industry, were added to the list of sanctioned entities. Also, all their subsidiaries, directly or indirectly controlled, are subject to restrictions.
Sanctioning the maritime fleet: 183 vessels, many of which are part of the “shadow fleet,” opaque traders of Russian oil, were targeted. Some of these were also shipped sanctioned Iranian oil.
Restrictions for service providers: The U.S. sanctioned more than 30 companies that provide essential services in the oil sector, such as the equipment and technical expertise needed for oil extraction.
Bans for U.S. companies: From February 27, 2025, U.S. companies will no longer be able to provide services related to oil extraction and production to entities in the Russian Federation.
US and UK arguments
The U.S. authorities said that these measures are meant to hit Russia's revenues from energy exports, money used to finance the war in Ukraine. "With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports," added Janet L. Yellen.
According to the U.S. authorities, the sanctions aim to undermine Russia's capacity to generate oil and natural gas revenues. The measures will directly affect the Russian economy and the Kremlin's capacity to continue the war.
"These measures are not just about punishing Russia, but also about protecting global economic stability and reducing the risks associated with Moscow's opaque activities," Treasury representatives stressed.
The new sanctions are part of a broader effort by the international community to reduce financial support for Russia’s aggression against Ukraine.
