What the new US and Britain sanctions against Russia predict in the field of energy

The imposition of new co-ordinated against it in the field of energy, announced yesterday (10.01.2025) the US and Britain, in order to strike “the main source of funding for the Kremlin” used in the war in Ukraine Ten days before the inauguration on 20 January of the president of the US, Donald Trump, the Ministry of Finance released data on sanctions, among other things, to the two main companies in Russia’s energy sector, Gazprom Neft and Sourgoutneftegaz. London also imposed sanctions on these two companies, which produce “over one million barrels of oil a day”, in other words they have revenue worth “23 billion dollars (22.5 billion euros) per year”. CORVERSE The decision was immediately denounced by Gazprom Neft, a subsidiary of the state-owned giant Gazprom, who reported on “uninexplainable” and “legal” move, according to Russian news agencies. According to Dalip Singh, Deputy White House National Security Advisor responsible for the international economy, these sanctions are “the most important ever imposed” by the US in the Russian energy sector. “They will strike hard” all the links “the supply and distribution chain” of Russia’s oil sector, he appreciated. They may lead to some “increasing fuel price” and in the US, US President Joe Biden admitted during an interview Press at the White House, trying to reassure, confirming that it will not exceed “the three to four minutes of the dollar per gallon”. CORVERSE But “it will have a much deeper impact on Russia’s ability to continue acting as it does in the conduct of the war” which is going to complete three years in a month and something. According to the Russian counterpart himself he is in a “difficult position” and should not be given “no rest”, this is “really important”. The British Ministry of Foreign Affairs also assured that oil revenues are “living for Russia’s war economy” and contributed “about a quarter of Russia’s total budget in 2023”. The fact that oil companies are targeted will reduce if it does not “exhaust” the money that the Kremlin has at its disposal to conduct the war and “every ruble we take out of Putin’s hands will help save lives of Ukrainians,” British diplomacy chief David Lami commented. Washington also announced a series of sanctions against nearly 200 tankers carrying oil and methane from Russia, part of what it describes as Moscow’s “ghost fleet”. Some of the ships that entered the target are sailing under the flag of Barbados or Panama. Ukrainian President Volontimir Zelensky welcomed the US-British measures, which would, according to him, “bring a great blow to the economic foundations of the Russian war machine”. Beyond companies and ships, sanctions target intermediaries, service providers in oil wells, as well as industry civil officials personally. They also provide for a ban on the provision of services by American companies in the sector to companies in Russia that are targeted. They are implemented on 27 January, clarified by the US Treasury. Widerly, the US acquires the possibility of proceeding with sanctions against “anyone who wants to be active or active” in the Russian energy sector, noted in the communication. The sanctions are added to an endless series of measures already imposed, among them the imposition of a ceiling price on Russian oil since December 2022. In addition, Washington announced on 21 November new sanctions on some fifty Russian banking institutions, including Gazprom Bank, a measure aimed also at strangling Moscow’s revenue from the sales of hydrocarbons. Asked about the fate of the sanctions after the new government takes over, a senior American official found that it is up to her to decide, as well as what the conditions will be for their removal. He argued that they give “a significant lever” to Mr Trump’s government and Ukraine to negotiate “just and lasting peace”. Penalties entail the freezing of resources, direct and indirect, of companies that are targeted at American jurisdiction. They also prohibit US-based companies and US citizens from dealing with the objectives of sanctions, at risk of being penalised in turn in such a case. Moscow reacted by clenching. The representative of the Kremlin Dmitry Peskov assured that Russia had prepared for them already before they were announced and that the outgoing government was set to leave to that of Mr Trump who will take over the next Monday the “heaviest possible legacy”. Source: RES – ICM