US tightens grip: New sanctions squeeze Russian oil trade
The White House has announced new sanctions against Russian oil companies, which are expected to cost Russia billions of dollars per month. The restrictions target Gazprom Neft and Surgutneftegas, as well as 183 ships involved in oil exports.
The list of sanctioned entities includes major Russian oil companies, such as Gazprom Neft and Surgutneftegas, and 183 ships engaged in oil exports, referred to as the "shadow fleet." Although Russia's largest oil producer, Rosneft, is not on the list, the restrictions also encompass financial and insurance institutions involved in oil and gas transactions. The new regulations prohibit the purchase of Russian energy resources in dollars.
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, said Janet Yellen, the U.S. Treasury Secretary.
Blockade of LNG Projects and leverage in negotiations
The U.S. State Department has gone a step further by blocking two active LNG projects and the activities of third-country entities supporting Russian energy exports. White House officials emphasize that the sanctions target every stage of the Russian oil trade—from production through transportation to sales—making evasion significantly more costly.
According to officials, the restrictions are intended not only to weaken the Russian economy but also to provide the United States and its allies with greater leverage in negotiations with Russia. Incoming National Security Advisor Mike Waltz previously supported the idea of such sanctions as a means of pressuring the Kremlin.
U.S. administration officials admitted that the sanctions had not been imposed earlier due to concerns about potential oil price hikes. However, energy market conditions have now changed—supply has increased, and other producers can fill any potential gaps. The decision to implement restrictions is also a response to Ukraine's growing financial needs and is meant to support its negotiating position in pursuit of peace.
Impact on the Russian economy
Experts predict that the new sanctions will deepen the difficulties faced by the Russian economy. The decline in the value of the ruble, already near historic lows, may increase inflation, which is currently hovering around 10%. The Russian central bank, forced to further raise interest rates from a record level of 21%, will be under pressure, affecting the financial condition of corporations.
The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior, summarized a senior White House official.
