US and UK Ramp Up Sanctions on Russia's Oil Industry
In a bold move to undercut Moscow’s energy revenue fueling its war in Ukraine, the United States and the United Kingdom have unveiled some of their most stringent sanctions yet against Russia. The crackdown targets over 200 entities and individuals, ranging from oil traders and government officials to insurance firms and hundreds of tankers.
For the first time since Russia’s full-scale invasion of Ukraine, the UK has joined the US in directly sanctioning two of Russia’s energy giants, Gazprom Neft and Surgutneftegas.
“Targeting Russia’s oil industry strikes directly at the heart of Putin’s war machine. Every ruble we take from his hands helps save Ukrainian lives,” said UK Foreign Secretary David Lammy.
Key Sanctions and Their Implications
The US Treasury announced Friday that some of these measures will be codified into law, ensuring that any future attempts to lift them—potentially under the next administration—would require Congressional approval.
Among the actions are plans to severely limit who can legally purchase Russian oil. Washington is also intensifying efforts to dismantle Russia’s so-called “shadow fleet,” a network of vessels that covertly ships Russian oil around the globe.
US Treasury Secretary Janet Yellen described the sanctions as a direct escalation. “These measures increase the risks for anyone facilitating Russia’s oil trade, whether through shipping or financial services,” she said.
President Joe Biden also weighed in, asserting that Russian President Vladimir Putin is “in a tough spot” and emphasizing the importance of keeping up the pressure.
Ukraine’s Reaction and Global Energy Impact
Ukrainian President Volodymyr Zelensky expressed gratitude for the bipartisan support from the US. Meanwhile, experts noted that earlier measures, like the oil price cap, had been less effective due to concerns about maintaining global oil supplies.
Olga Khakova of the Atlantic Council’s Global Energy Center acknowledged this issue but said market conditions have since improved. “With US oil production at record highs, the economic risks of reducing Russian oil exports have diminished,” she noted.
Daniel Fried, another expert from the Atlantic Council, described the sanctions as a potential “body blow” to Russia’s oil sector. However, he and others stressed the importance of robust enforcement.
John Herbst, a former US ambassador to Ukraine, echoed this sentiment. “These steps are excellent, but their success depends entirely on their implementation,” he said.
A Critical Turning Point
With both the US and UK ramping up efforts to cut Russia’s energy revenue, the international community is signaling its commitment to holding Moscow accountable. The coming months will reveal whether these measures can effectively undermine Russia’s economy and weaken its ability to continue the war.
