America and Britain tighten sanctions on Russian oil industry
The Biden administration has imposed some of its toughest sanctions yet on Russia, a move intended to hit Moscow’s energy revenues that are fueling its war in Ukraine.
The measures target more than 200 entities and individuals ranging from traders and officials to insurance companies, as well as hundreds of oil tankers.
For the first time since Moscow’s all-out invasion of Ukraine, Britain will join the US in directly sanctioning energy companies Gazprom Neft and Surgutneftegas.
Foreign Secretary David Lammy said, “Taking on Russian oil companies would empty Russia’s war stockpile – and every ruble we take out of Putin’s hands helps save Ukrainian lives.”
Some of the measures announced by the US Treasury on Friday will be enshrined in law, meaning the incoming Trump administration will need to engage Congress if it wants to remove them.
Washington is also moving to severely limit who can legally buy Russian energy, and going after Moscow’s “shadow fleet” of ships that ship oil around the world.
US Treasury Secretary Janet Yellen said the action “increases the risk of sanctions related to Russia’s oil trade, including shipping and financial facilities in support of Russia’s oil exports.”
President Joe Biden said Russian leader Vladimir Putin is in a “tough position,” adding that “it’s really important that he has no breathing room to do the God-awful things that he continues to do.” “
Ukrainian President Volodymyr Zelensky thanked the US for its “bipartisan support”.
Since the beginning of the war in Ukraine, price limit on oil One of the key measures has been to curb Russia’s energy exports.
But as Olga Khakova of the Atlantic Council’s Global Energy Center points out, it Effectiveness was “thin” Because he was also trying to avoid the fall in the amount of Russian oil in the market.
This was due to concerns about the impact a supply shortage would have on the global economy.
But experts say that the oil market is now in a better condition.
Daniel Fried, a distinguished fellow at the Atlantic Council, said, “U.S. oil production (and exports) are at record levels and rising, and so the price impact of removing Russian oil from the market, the purpose of today’s sanctions, will be minimal. ” ,
“The U.S. government has gone after the Russian oil sector in a big way, intending to respond to any major shocks,” Fried said.
Former US Ambassador to Ukraine John Herbst said that although the steps were “excellent”, their implementation would be critical.
“This means that it is the Trump administration that will determine whether these measures will actually put pressure on the Russian economy,” he said.
