New U.S. sanctions target Russian oil firms and shadow fleet
The White House has announced new sanctions against Russian oil companies, aimed at causing Russia losses of billions of dollars monthly. The restrictions include Gazprom Neft and Surgutneftegaz, as well as 183 ships associated with oil exports.
The list of sanctioned entities includes the largest Russian oil companies, including Gazprom Neft and Surgutneftegaz, along with 183 ships involved in oil exports, known as the "shadow fleet." Although the largest Russian oil producer, Rosneft, is not on the list, the restrictions also cover financial and insurance institutions handling oil and gas transactions. The new regulations prevent the purchase of Russian energy resources with 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. Department of State took a step further by blocking two active LNG projects and the activities of third-country entities supporting Russian energy exports. White House representatives emphasize that the sanctions hit every stage of the Russian oil trade—from production through transportation to sales—making it significantly more costly to circumvent them.
According to officials, the restrictions are intended not only to weaken the Russian economy but also to give the United States and its allies greater leverage in negotiations with Russia. The future National Security Advisor Mike Waltz previously supported the idea of such sanctions as an element of pressure on the Kremlin.
U.S. administration officials admitted that sanctions were not imposed earlier due to fears of possible oil price hikes. However, conditions in the energy market have now changed – the supply of resources has increased, and other producers are able to fill potential gaps. The decision to introduce the restrictions is also a response to Ukraine's growing financial needs and aims to support its negotiating position in the pursuit of peace.
Impact on the Russian economy
Experts predict that the new sanctions will deepen the difficulties of the Russian economy. The fall in the value of the ruble, already close to historical lows, may increase inflation, which currently stands at about 10%. The Russian central bank, forced to further raise interest rates from the 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 behaviour – summed up a senior White House official.
