Great Britain USA targets Russia's energy sector with new sanctions
The outgoing US administration of President Joe Biden is imposing what it says are the toughest sanctions yet against Russia's energy sector. The measures are aimed at two of Russia's largest oil companies, Gazprom Neft and Surgutneftegas, the Treasury Department in Washington announced.
10.01.2025, 17:07
SDA
Sanctions are also being imposed on 183 ships, most of which the US government counts as part of the so-called Russian shadow fleet. These are tankers and cargo ships that Russia uses to circumvent existing sanctions on oil transportation. Specific projects and the infrastructure for liquefied natural gas (LNG) as well as subcontractors, service providers, traders and maritime insurers are also affected.
With the new measures, the US government wants to hit the production and supply chains of the Russian energy industry and thus weaken the structure that the Kremlin is using to finance its war of aggression against Ukraine. "Our sanctions are like sand in the gears of the Russian war machine," it said. Great Britain will join the sanctions. "We assume that our measures will cost Russia several billion dollars every month."
The US government hopes that this will further weaken the Russian currency, fuel inflation and force the Russian central bank to raise the key interest rate even further. This has already reached a record level. This in turn could further worsen the financial situation of Russian companies. "The goal is to change Putin's calculation about the cost of continuing a senseless war while giving Ukraine greater leverage - the leverage it needs to negotiate a just and lasting peace," it said.
Washington sees changed situation on energy markets
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), the energy markets were very tight and we were concerned that measures against Russia's oil exports could drive up prices to such an extent that Russia would end up earning even more despite lower sales volumes," it said. For this reason, a price cap for Russian oil exports to third countries was initially agreed with the G7 allies. The current market situation with increased production capacities - for example in the USA, Canada and Brazil - now allows for a tougher approach without destabilizing the global oil market.
Trump's inauguration brings uncertainty
However, the inauguration of Republican Donald Trump on January 20 could fundamentally change the dynamics of US sanctions policy. When asked how the situation could develop after the change of government, high-ranking representatives of the Biden administration stated that they could not speak for the next administration: "It is entirely up to them to decide if, when and under what conditions they lift the sanctions we have imposed."
Trump regularly emphasizes his good relations with Russian President Vladimir Putin. During the election campaign, he repeatedly claimed that he could end the war in Ukraine within 24 hours - he left open exactly how. There is concern in Kiev and other European capitals that Trump could cut support for Ukraine in order to pressure the government there into negotiations with Moscow.
Meanwhile, the Biden administration is working on the last few meters to send extensive military aid to Kiev in order to use the funds already approved by Congress in time. The new sanctions add to a long line of measures the US and allies - including the European Union - have taken since the start of the war to weaken Moscow's revenue and military capabilities.
