Outgoing US President Biden has intensified sanctions against Russia, particularly targeting the energy sector and its shadow fleet, with support from Japan and the UK. The sanctions focus on major oil companies Gazprom Neft and Surgutneftegas, alongside 183 vessels linked to illicit oil exports. The aim is to disrupt Russia’s military funding in Ukraine. Gazprom Neft plans to continue operations despite the sanctions, while Japan has announced additional measures against individuals and organizations supporting Russia.
In a decisive move before the conclusion of his presidency, outgoing US President Biden intensifies sanctions against Russia, particularly focusing on the energy sector and the Russian shadow fleet. Both Japan and the UK are aligning with these measures.
The United States is adopting a more aggressive approach towards the Russian oil industry. The newly introduced sanctions specifically target two major Russian oil corporations, Gazprom Neft and Surgutneftegas, as announced by the Treasury Department in Washington.
Additionally, 183 vessels will face sanctions, with the US government asserting that most of these belong to the so-called Russian shadow fleet, which is utilized for exporting Russian oil. According to a resolution from the UN shipping organization, these shadow fleet vessels are designed to evade sanctions.
Moreover, specific projects and infrastructure related to liquefied natural gas (LNG), as well as subcontractors, service providers, traders, and maritime insurers, will also be impacted by these measures.
Despite the ban, over a dozen ships are currently transporting Russian crude oil directly to European ports.
The Purpose Behind the Sanctions
Through these sanctions, the US government intends to disrupt the production and supply chains of the Russian energy sector, ultimately undermining the resources the Kremlin relies on to fund its military actions in Ukraine.
The US government highlighted, “Our sanctions act like sand in the gears of the Russian war machine. We anticipate that our actions will cost Russia several billion dollars every month.”
Gazpromneft’s Response
In response to the new US sanctions, Gazpromneft declared its readiness to continue operations. The company characterized the sanctions as “unjustified, illegitimate, and contrary to the principles of free competition.”
Over the past two years, Gazpromneft has been “consistently preparing for various negative sanction scenarios.” The company noted that it has already been subjected to unilateral sanctions since 2022, and many constraints have been integrated into its operational processes.
Despite the pressure, the Kremlin remains optimistic, asserting that the anticipated collapse of the Russian economy has not materialized, even with extensive sanctions from the West.
US Justification for the Sanctions
Washington has explained that the timing of the sanctions is influenced by changes in the global energy markets. “At the onset of the war in February 2022, the energy markets were extremely volatile, and we were apprehensive that sanctions on Russian oil exports could lead to soaring prices, allowing Russia to profit despite lower sales,” stated the Treasury Department. The current energy market, bolstered by increased production capacities, now permits a more stringent approach without destabilizing global oil prices.
Other nations have already enacted sanctions and ceased importing Russian oil. In response, Russia has formed its own oil fleet under its flag, securing insurance domestically. The majority of its oil exports are now directed towards Asia, particularly India.
The UK Takes Action
The British Foreign Office announced it would coordinate with the US in implementing these sanctions. Foreign Secretary David Lammy remarked, “Oil revenues are vital to Putin’s war economy. Targeting Russian oil companies will deplete Russia’s war funds—every ruble taken from Putin contributes to saving Ukrainian lives.”
The recent sanctions against Russia have further weakened the ruble.
Japan’s Additional Sanctions
Japan has also initiated further sanctions against Russia in light of the Ukraine conflict. The assets of eleven individuals, three banks, and 29 organizations will be frozen, as announced by the Ministry of Foreign Affairs, Finance, and Trade. This list includes a North Korean trading company and a Georgian bank.
Furthermore, the Cabinet has instituted export bans on 22 Russian entities, along with restrictions on 31 non-Russian organizations believed to be aiding Russia in evading sanctions. A comprehensive list of 335 goods prohibited for export to Russia starting January 23 has also been approved, which includes communication devices.
This information was reported by Deutschlandfunk on January 10, 2025, at 6:31 PM.