The United States and the United Kingdom have jointly announced a comprehensive set of sanctions targeting Russia’s oil sector, marking one of the most stringent measures to date. On Friday, the US Treasury unveiled sanctions aimed at over 200 entities and individuals, including traders, officials, insurance companies, and numerous oil tankers. The sanctions, which seek to curb Russia’s energy exports, will be enshrined in law, necessitating congressional involvement for any potential lifting by the incoming Trump administration. In solidarity, the UK will directly sanction major Russian energy firms Gazprom Neft and Surgutneftegas.
US Treasury Secretary Janet Yellen emphasized the necessity of these actions to diminish Moscow’s energy revenue. She explained that the sanctions aim to target Moscow’s “shadow fleet” of vessels that transport oil globally, severely restricting legal purchases of Russian energy. Yellen stated the effort was about “ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”
In line with this move, President Joe Biden expressed concerns over Russia’s actions, asserting that Russian leader Vladimir Putin was in “tough shape.” He further commented on the importance of denying Putin any opportunity to continue his aggressive operations: “it’s really important that he not have any breathing room to continue to do the god-awful things he continues to do.” Ukraine’s President Volodymyr Zelensky expressed gratitude to the US for its “bipartisan support” in imposing these sanctions.
The Biden administration’s approach includes a price cap on oil, one of the key strategies designed since the war in Ukraine began to restrain Russia’s energy exports. Foreign Secretary David Lammy described these sanctions as effective in draining Russia’s war chest, stating, ‘Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.’
Experts have weighed in on the sanctions’ potential impact. Daniel Fried, a distinguished fellow at the Atlantic Council, said ‘US oil production (and exports) are at record levels and rising, and therefore the price impact of taking Russian oil off the market, the objective of today’s sanctions, will be attenuated.’ John Herbst, former US ambassador to Ukraine, praised the measures as “excellent,” while highlighting that their effective implementation is critical.
Author’s Opinion
The joint sanctions imposed by the US and the UK represent a significant step in applying economic pressure to Russia’s energy sector, aiming to deplete Putin’s war resources. While the sanctions are well-calculated to limit Russia’s revenue from oil exports, the real challenge lies in their effective enforcement and impact on global oil prices. As both nations work to implement these measures, their success will depend on a delicate balance between economic pressures and minimizing global disruptions in the energy market. This strategic move highlights the role of economic measures in modern warfare and underscores the international resolve to hold Russia accountable for its actions in Ukraine.
Featured image credit: Rawpixel
Follow us for more breaking news on DMR