The Biden administration has introduced its most extensive sanctions package to date, targeting Russia’s oil and gas revenues.
The move aims to cripple Moscow’s primary source of funding for its ongoing war in Ukraine, which has claimed over 12,300 civilian lives and left cities devastated since Russia’s invasion began in February 2022.
The US Treasury’s measures, announced on Friday, include sanctions on major Russian energy companies Gazprom Neft and Surgutneftegas, as well as 183 vessels involved in transporting Russian oil. Many of these vessels belong to the “shadow fleet”—aging tankers operated by non-Western companies that have facilitated oil shipments to India, China, and other markets following a Group of Seven price cap in 2022.
Ukrainian President Volodymyr Zelensky expressed optimism about the impact of the sanctions, stating on X that they would “deliver a significant blow” to Russia’s ability to fund its war effort. “The less revenue Russia earns from oil … the sooner peace will be restored,” Zelensky added.
Daleep Singh, a senior economic and national security adviser at the White House, described the sanctions as “the most significant yet” on Russia’s energy sector. He highlighted their comprehensive scope, noting that they target every step of the oil production and distribution chain.
The Treasury also closed a loophole that previously allowed the intermediation of energy payments through sanctioned Russian banks, further tightening the pressure on Moscow. US officials estimate that the sanctions, if strictly enforced, could cost Russia billions of dollars each month.
While Gazprom Neft dismissed the sanctions as “unjustified and illegitimate,” the Biden administration remains resolute, viewing the measures as a critical tool to weaken Russia’s war machine and support Ukraine’s resistance.
As the US prepares for a political transition to Donald Trump’s incoming administration, the sanctions are also designed to strengthen Kyiv’s leverage in potential peace negotiations.
This latest sanctions package underscores the global community’s determination to hold Moscow accountable while reducing its financial means to sustain the conflict.
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