As reported by Reuters citing a US Treasury document distributed among traders in Europe and Asia, the United States will impose the toughest sanctions against the Russian oil industry. This announcement led to a 3% increase in global oil prices on Friday.
Washington will impose sanctions against two of the largest oil companies — Gazprom Neft and Surgutneftegas, as well as against the companies Ingosstrakh and AlfaStrakhovanie, which insure most of the vessels delivering Russian oil to India, Russia's largest oil buyer, according to the document. The new list also includes more than 180 marine vessels and dozens of traders.
Among other measures are new sanctions against nearly 80 legal and physical entities involved in the production and export of liquefied natural gas, as well as in the metallurgical and mining sectors, writes The Washington Post.
This package of sanctions will lead to serious disruptions in the export of Russian oil to its main buyers — India and China, said four Reuters sources in Russian oil trading and three sources in Indian refining. Indian refining companies will refrain from accepting Russian oil on tankers under sanctions or on vessels insured by Russian insurers that have been sanctioned, sources in Indian refining companies reported.
Until now, hundreds of vessels and many Russian oil traders have avoided the toughest American sanctions, as the Joe Biden administration tried to balance the need to tighten sanctions and prevent a rise in global oil prices.
As a WP interlocutor reported, the new administration may lift the sanctions, but he noted that a number of Republican lawmakers have urged Biden to take tougher economic measures against Russia. Moreover, the new package is adopted in accordance with laws that give Congress the right to object to any step to repeal them. The new measures also put Donald Trump in a more advantageous position to force Russia to negotiate, arguing that his hands are tied by existing sanctions.
“In aggregate, we believe that our actions lay a solid foundation on which the next administration can rely,” said a Biden administration official, predicting that these measures “will cost Russia up to billions of dollars a month in revenues needed to finance domestic arms production and the costs of purchasing weapons and components from countries like Iran and China.”
According to the document, the US Treasury will allow a transition period until March 12, which will enable the completion of some energy-related transactions.
Photo: Reuters