 "US slaps Russian oil industry with toughest sanctions yet, UK joins bid – Firstpost")
The US Treasury announced on Friday that some of the measures will be turned into a law which would effectively mean that if the incoming Trump administration decides to overturn them, they would have to seek the approval of the Congress
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Just days before Donald Trump’s inauguration, the Biden administration imposed some of its toughest sanctions on the Russian oil industry with an aim to dismantle Moscow’s war machine that is fuelling the war in Ukraine.
More than 200 entities and individuals, including traders and officials, insurance companies, and oil tankers, have been subject to the sanctions.
The US Treasury announced on Friday that some of the measures will be turned into a law which would effectively mean that if the incoming Trump administration decides to overturn them, they would have to seek the approval of the Congress.
“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” said Secretary of the Treasury Janet L. Yellen.
She added, “This action builds on, and strengthens, our focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including through the G7+ price cap launched in 2022. With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”
Which Russian entities have been hit?
The US Treasury imposed sanctions on Gazprom Neft and Surgutneftegas, which explore for, produce and sell oil as well as 183 vessels that have shipped Russian oil, many of which are in the so-called shadow fleet of ageing tankers operated by non-Western companies. The sanctions also include networks that trade petroleum.
The Treasury also rescinded a provision that had exempted the intermediation of energy payments from sanctions on Russian banks.
The sanctions should cost Russia billions of dollars per month if sufficiently enforced, another US official told Reuters in a call.
“There is not a step in the production and distribution chain that’s untouched and that gives us greater confidence that evasion is going to be even more costly for Russia,” the official said.
UK joins US
For the first time since Moscow’s full-scale invasion of Ukraine, the UK will join the US in imposing direct sanctions on energy companies Gazprom Neft and Surgutneftegas.
“Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives,” said Foreign Secretary David Lammy.
Oil prices rally
Oil prices rallied nearly 3 per cent to their highest in three months on Friday as traders braced for supply disruptions.
Brent crude futures settled at $79.76 a barrel, up $2.84, or 3.7 per cent, after crossing $80 a barrel for the first time since October 7.
US West Texas Intermediate crude futures rose $2.65, or 3.6 per cent, to settle at $76.57 per barrel, also a three-month high.
At their session high, both contracts were up more than 4 per cent after traders in Europe and Asia circulated an unverified document detailing the sanctions.
With inputs from Reuters
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