Russian petrol, Photo: Dmitrii Melnikov / Alamy / Alamy / Profimedia
US President Joe Biden’s administration on Friday announced the largest package of sanctions yet on Russia’s oil and gas revenues, in an attempt to give Ukraine and the president’s team elected Donald Trump an advantage in the peace negotiations, reports News.ro citing Reuters.
The measures are aimed at cutting Russia’s revenue, which is fueling the war that has claimed tens of thousands of lives and turned entire cities into ruins since Moscow invaded Ukraine in February 2022.
Ukrainian President Volodymyr Zelensky said on the X platform that these sanctions will “significantly hurt” Moscow.
“The less Russia earns from oil, the faster peace will be restored,” Zelensky added.
White House economic and national security adviser Daleep Singh described the measures as “the most significant sanctions ever imposed on the Russian energy sector, the main source of income for Putin’s war effort “.
Extended sanctions on the Russian oil production and distribution chain
The US Treasury has imposed sanctions on the companies Gazprom Neft and Surgutneftegas, as well as 183 vessels used to transport Russian oil, many of which are part of the “umbrella” fleet operated by non-U.S. companies. western The sanctions also include networks that sell oil.
These measures affect every step of the Russian oil production and distribution chain, according to US officials, and could cost Russia billions of dollars a month if strictly enforced.
The sanctions provide a transition period until March 12 for the completion of energy transactions. However, sources in the Russian oil trade and Indian refiners have warned that the sanctions will cause serious disruption to Russian exports to major buyers India and China.
Economic and military impact
Global oil prices rose more than 3% before the announcement, with Brent near $80 a barrel. These sanctions come amid a broader effort by the Biden administration, which has provided Ukraine with about $64 billion in military aid since the invasion began.
The Biden administration expects the recent sanctions to increase economic pressures on Russia, which already faces nearly 10 percent inflation and a bleak economic forecast for 2025 and beyond.
US officials said the decision to lift sanctions rests entirely with the Trump Administration, which takes office on January 20. However, any reversal of the sanctions would require notification to Congress and a vote of approval.
The Biden administration believes that energy sanctions and military aid to Ukraine give the incoming administration a significant advantage in negotiations for a just and lasting peace.
Trump’s return to the White House has raised hopes for a diplomatic solution, but also fears in Ukraine that peace could come at a high price, including ceding important territories to Russia.
