US sanctions on Russian oil and gas: Moscow in Washington’s crosshairs

The measures aim to weaken the Russian economy and limit funding for the war in Ukraine

The outgoing US administration has introduced a series of new sanctions against the Russian energy sector with the aim of undermining the Kremlin’s sources of funding, which uses oil and gas revenues to support the war effort in Ukraine. The measures affect major Russian energy companies such as Gazprom and Surgutneftegas, along with nearly 200 oil and gas tankers, which are part of Moscow’s so-called ‘ghost fleet’, operating under the flags of countries such as Barbados and Panama.

In a press release, US Treasury Secretary Janet Yellen emphasised that these measures are decisive in reducing Russia’s revenue, particularly from energy exports, and inflicting ‘serious damage’ on Russian finances. The sanctions include a ban on US companies providing assistance to companies in the sector, including support for oil and gas extraction and production. The ban will come into effect on 27 January and is in addition to sanctions already imposed, including the Russian oil price cap, introduced in December 2022.

The sanctions were imposed in cooperation with the UK and could cost Russia billions of dollars per month. Gazprom Neft, a subsidiary of the state giant Gazprom, called these measures ‘unjustified’ and ‘illegitimate’, while Serbian President Aleksandar Vucic announced talks with Russian President Vladimir Putin to discuss the sanctions, which also affect a Serbian energy company.

This escalation of economic measures by Washington demonstrates the US determination to intensify pressure on Moscow at a time when the war in Ukraine continues to raise economic and geopolitical costs for Russia.

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