The UK and US have unveiled stringent sanctions on Russia’s energy sector, targeting oil giants Gazprom Neft and Surgutneftegas for the first time. The measures aim to choke Moscow’s energy revenues, a primary source of funding for its war in Ukraine.
In a coordinated effort to cripple Moscow’s war funding, the UK and US have announced sweeping sanctions targeting Russia’s energy sector, including oil giants Gazprom Neft and Surgutneftegas. This marks the first time Britain has directly sanctioned major Russian energy firms since the full-scale invasion of Ukraine.
Foreign Secretary David Lammy emphasized the sanctions’ importance: “Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.”
The measures, revealed on Friday, also aim to curtail the operations of Russia’s so-called “shadow fleet” of oil tankers that covertly transport energy products worldwide.
“Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.” – UK Foreign Secretary David Lammy
US Sanctions to Hit Hard
The Biden administration’s sanctions target over 200 entities and individuals, from traders and officials to insurers and shipping firms. US Treasury Secretary Janet Yellen described the move as “ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”
Washington has also proposed measures to limit who can legally purchase Russian energy, ensuring tighter controls on the flow of Moscow’s resources.
President Joe Biden underscored the sanctions’ potential impact, stating that Russian President Vladimir Putin is in “tough shape.” He acknowledged that gas prices in the US might rise slightly but stressed the long-term economic damage to Russia: “The measures are likely to have a profound effect on the growth of the Russian economy.”
Global Energy Market Stabilized
Since the war’s onset, sanctions on Russian oil have aimed to curb revenues while maintaining global supply stability. Experts now believe the oil market is better positioned to absorb these restrictions.
Daniel Fried, a distinguished fellow at the Atlantic Council, remarked: “US oil production and exports are at record levels and rising, so the price impact of taking Russian oil off the market will be attenuated.”
Bipartisan Support and Implementation Challenges
Ukrainian President Volodymyr Zelensky thanked the US for its bipartisan support. However, former US ambassador to Ukraine John Herbst warned that the sanctions’ effectiveness would depend on robust enforcement: “It is the Trump administration that will determine if these measures do in fact put pressure on the Russian economy.”
As global leaders push for tighter sanctions, the UK and US’s unified front underscores their commitment to undermining Russia’s capacity to wage war while stabilizing energy markets.
