• The U.S. Treasury Department has announced new sanctions targeting Russian oil producers Gazprom Neft and Surgutneftegaz, their subsidiaries, service providers and more than 180 oil tankers.
• Treasury Secretary Janet Yellen highlighted these sanctions as a way to disrupt Russia’s revenue from oil exports, aiming to hinder Russia’s ability to fund its war against Ukraine.
• The sanctions also allow the U.S. to impose penalties on anyone found to be operating or having operated in Russia’s energy sector.
• Oil prices surged following the announcement, with Brent crude oil and U.S. crude oil closing at their highest levels since October.
• The sanctions are expected to disrupt global oil supply chains, as Indian and Chinese refiners may need to seek alternative sources of oil from the Middle East.

The U.S. Department of the Treasury has announced a new round of sanctions on the Russian oil industry to constrict further the country’s ability to generate revenue from its oil exports.

The sanctions, implemented in conjunction with the U.K., specifically target two major Russian oil producers: Gazprom Neft and Surgutneftegaz, along with their subsidiaries and service providers. Gazprom Neft, a subsidiary of Russia’s state energy giant Gazprom, is responsible for oil and gas field development and extraction. Meanwhile, Surgutneftegaz, founded in 1993, is a significant player in Russia’s energy sector and was listed among the country’s top 100 companies in 2023.

In addition to these companies, the sanctions also extend to over 20 subsidiaries, more than 180 oil tankers linked to what the U.S. describes as a “shadow fleet” of Russian operators and over 30 Russian oilfield service providers. These targeted entities play crucial roles in Russia’s oil production, transportation and export infrastructure. (Related: Russian oil exports surge despite Western sanctions, Moscow’s output cut.)

The U.S. Treasury has also issued a determination allowing American authorities to impose sanctions on anyone determined to operate or have operated in Russia’s energy sector.

“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said along with the announcement on Jan. 10. “This action builds on and strengthens our focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including through the G7+ price cap launched in 2022. With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”

This latest round of sanctions is part of a broader strategy by the U.S. and its allies to curb Russia’s economic growth and limit its ability to finance military operations.

Oil prices surge as U.S. Treasury imposes sanctions against Russian oil industry

That same day, oil prices surged following the announcement of comprehensive sanctions.

For instance, Brent crude oil gained $2.84 (3.69 percent) to close at $79.76 per barrel, while U.S. crude oil advanced $2.65 (3.58 percent) to settle at $76.57 per barrel. Both benchmarks closed at their highest levels since October.

The sanctions are expected to disrupt the global oil supply chain, as Indian and Chinese refiners that have been importing Russian oil may now have to seek alternative sources from the Middle East, according to Bob Yawger, executive director of energy futures at Mizuho Securities.

This decision to impose these sanctions, just before the inauguration of President-elect Donald Trump, has caught the market off guard.

“The Biden administration opted for more robust energy sanctions, which caught the oil market especially complacent about sanctions risks,” said Bob McNally, president of Rapidan Energy Group. The impact on oil prices is expected to last until signals are received from the incoming Trump administration regarding their stance on these sanctions.  “Therefore, we expect today’s material risk premium in Brent to stick pending signals from the Trump team as to whether they will continue these sanctions,” McNally added.

EnergySupply.news has more stories like this.

Watch this short clip showing the rolling blackouts currently gripping Transnistria.

This video is from Cynthia’s Pursuit of Truth channel on Brighteon.com.

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Sources include:

RT.com

Home.Treasury.gov

MSN.com

Brighteon.com