The United States and the United Kingdom have introduced some of their most stringent sanctions yet on Russia, targeting the country’s vital oil industry in a bid to weaken its ability to finance the war in Ukraine. The measures, announced Friday, aim to cripple Moscow’s energy revenues by targeting oil traders, officials, insurance companies, and a vast network of oil tankers.
Targeting Russian Oil Giants
For the first time since the full-scale invasion of Ukraine, the UK joined the US in directly sanctioning major Russian energy firms 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 UK Foreign Secretary David Lammy.
The sanctions also target what the US Treasury referred to as Russia’s “shadow fleet,” a network of vessels that facilitate oil exports globally, as well as financial and insurance services supporting these operations.
Legislative Action and Bipartisan Support
Some of the measures introduced by the Biden administration will be codified into law, requiring congressional approval to lift them, even under an incoming Trump administration. Treasury Secretary Janet Yellen emphasized that these actions are designed to increase the risks for entities involved in Russia’s oil trade.
President Joe Biden underscored the significance of the sanctions, stating, “It’s really important that [Putin] not have any breathing room to continue to do the god-awful things he continues to do.”
While acknowledging the potential for a slight increase in US gas prices—estimated at three to four cents per gallon—Biden expressed confidence in the sanctions’ broader impact on Russia’s economy.
A Global Energy Shift
The sanctions come amid a more stable global oil market. Initial measures, including a price cap on Russian oil, were diluted by concerns over reduced supply affecting global economic stability. However, the market’s improved health, coupled with record US oil production and exports, has created an environment more conducive to aggressive sanctions.
“Taking Russian oil off the market, the objective of today’s sanctions, will have less impact on global prices now,” said Daniel Fried, a distinguished fellow at the Atlantic Council.
Implementation Is Key
Experts stress that the success of these measures will depend on rigorous enforcement. John Herbst, former US ambassador to Ukraine, called the sanctions “excellent” but cautioned that their effectiveness relies on implementation.
“The Trump administration will ultimately determine if these measures truly pressure the Russian economy,” Herbst said.
Ukraine’s Response
Ukrainian President Volodymyr Zelensky expressed gratitude for the sanctions, highlighting the bipartisan support from the US as a critical factor in the ongoing resistance against Russia’s aggression.
As Western allies intensify their pressure on Russia, the new sanctions represent a significant escalation aimed at weakening Moscow’s ability to sustain its war efforts. With stronger enforcement mechanisms and a more favorable global energy market, these measures may deal a substantial blow to Russia’s economy.
