The US has imposed severe sanctions on Russia’s energy sector, including its oil industry, in an effort to cut off funding for Moscow’s war against Ukraine. The move comes as President-elect Donald Trump prepares to meet Russian President Vladimir Putin.
The sanctions, introduced just over a week before Biden leaves office, target hundreds of individuals and entities, including two major oil companies: Gazprom Neft and Surgutneftegas. They also hit nearly 200 oil-carrying vessels accused of evading sanctions and oil traders.
According to senior administration officials, the sanctions are expected to cost Russia billions of dollars per month. The US has worked with the UK to coordinate the move, which is part of a broader approach to bolstering Ukraine.
The Biden administration announced its final tranche of military aid for Ukraine on Thursday, valued at around $500 million. The Pentagon said that nearly $4 billion in funding will roll over to the incoming Trump administration for Ukraine aid.
Trump has expressed his desire to end the war in Ukraine, saying Putin wants to meet and negotiate. However, the strength of the sanctions will depend on enforcement, with officials warning that Russia will try to circumvent them.
The move comes as oil prices have been relatively subdued due to record-sharings US production. Nonetheless, prices jumped sharply Friday morning after rumors of the sanctions announcement, with US crude up 4% and Brent crude advancing 3.7%.
Source: https://edition.cnn.com/2025/01/10/politics/biden-admin-russia-energy-sanctions-ukraine/index.html