Shortly before the end of his term in office, outgoing US President Biden is tightening sanctions against Russia. The measures target the energy sector and the Russian shadow fleet. Japan and Great Britain join.
The USA wants to take much tougher action against the Russian oil industry. The new measures target two of Russia's largest oil companies, Gazprom Neft and Surgutneftegas, the Treasury Department in Washington said.
183 ships are also sanctioned. The US government assumes that the majority of them belong to the so-called Russian shadow fleet. Russian oil is exported with such ships. According to a resolution by the UN shipping organization IMO, ships belong to a shadow fleet that are used to circumvent sanctions.
Specific projects and the infrastructure for liquefied natural gas (LNG) as well as subcontractors, service providers, traders and maritime insurers are also affected.
Sanctions should War financing complicate
With the new measures, the US government wants to hit the production and supply chains of the Russian energy industry and thereby weaken the structure that the Kremlin uses to finance its war of aggression against Ukraine.
“Our sanctions act like sand in the gears of the Russian war machine,” said the US government. “We estimate that our actions will cost Russia several billion dollars every month.”
Gazpromneft is prepared
Gazpromneft said it would continue operations despite the new US sanctions. A statement called the measures “unjustified, illegitimate and contrary to the principles of free competition.”
Gazpromneft has “consistently prepared for various negative sanctions scenarios” over the past two years. “In addition, the company has been subject to unilateral foreign sanctions since 2022, so many of these restrictions have already been factored into its operations,” the company wrote.
According to the White House, the oil market allows measures
Washington justified the timing of the sanctions with a changed situation on the global energy markets. “At the beginning of the war (in February 2022), energy markets were very tense, and we were concerned that measures against Russia's oil exports could drive up prices so much that Russia would end up earning even more despite lower sales volume,” Das shared Ministry of Finance with. The current market situation with increased production capacities now allows for a tougher pace without destabilizing the global oil market.
The USA and other countries have already imposed sanctions and are no longer importing Russian oil. Russia has already responded to this by flagging its own oil fleet, which is insured in Russia. Exports now flow mainly to Asia, especially India.
Great Britain joins in
The British Foreign Office said it was joining the steps in coordination with the US. “Oil revenues are the lifeblood of Putin's war economy,” said Foreign Minister David Lammy. “The confrontation with Russian oil companies will empty Russia's war chest – and every ruble we take out of Putin's hands will help save Ukrainian lives.”
Japan is also taking action
Japan also imposed additional sanctions on Russia because of the war in Ukraine. The assets of 11 individuals, three banks and 29 other organizations would be frozen, the Ministry of Foreign Affairs, Finance and Trade said. There is also a North Korean trading company and a Georgian bank.
In addition, the cabinet imposed export bans on 22 Russian organizations. Export restrictions also apply to 31 non-Russian groups that the government believes helped Russia evade sanctions. The Cabinet also approved a list of 335 goods that will no longer be allowed to be exported to Russia from January 23, including communications equipment
