Sanctions Against Russian Oil Giants
In a coordinated move, the US and UK governments announced substantial sanctions on Friday against Russia’s energy sector, this time focusing on oil majors Gazprom Neft and Surgutneftegas. The G7 pledged to limit Russia’s revenue from energy exports, in line with their commitment as part of the war between Russia and Ukraine continues. The US Treasury Department added more than 180 ships and the two major Russian oil firms to its list.
The UK government has also sanctioned these companies by saying their earnings are going straight into Russian President Vladimir Putin’s war chest, thereby supporting the war in Ukraine. This happens at a time when President Biden is just a few days shy of leaving the office.
Effects of Sanctions on Russia’s War Machine
The sanctions have been termed by Ukrainian President Volodymyr Zelensky as a “crucial blow” to Russia’s war machine. He highlighted the fact that the sanctions would target Russia’s supply chain and its financial basis. Moreover, the sanctions will further augment the risks attached to Russia’s oil trade and disrupt shipping and financial facilitation of its exports of oil.
Gazprom Neft Rejects Sanctions
Gazprom Neft denounced the sanctions as “groundless” and “illegal,” violating the rules of free competition, it claimed.
Global Reaction and Further Action
Serbian President Aleksandar Vucic vowed to talk over the sanctions with Russian President Putin, pointing out the wider political and geopolitical aspects. Japan has also sanctioned individuals and companies from Russia, while it also introduced sanctions against Chinese firms, firms in the United Arab Emirates, and other nations.
The Biden administration’s actions are expected to test the incoming Trump administration’s stance on sanctions and future support for Ukraine as tensions remain high ahead of the new presidential term.
