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The US and the UK have tightened sanctions against Russia’s energy industry


The Biden administration has imposed some of its toughest sanctions yet on Russia in a move designed to disrupt Moscow’s energy revenues, which are fueling the war in Ukraine.

The measures target more than 200 entities and individuals, from traders and civil servants to insurance companies, as well as hundreds of oil tankers.

In the first since Moscow’s full-scale invasion of Ukraine, the UK will join the US in directly punishing energy companies Gazprom Neft and Surgutneftegas.

“Taking over Russian oil companies will empty Russia’s war chest, and every ruble we take from Putin’s hands helps save lives in Ukraine,” said Foreign Minister David Lammy.

Some of the measures announced by the US Treasury on Friday will be enacted into law, meaning the incoming Trump administration will have to involve Congress if it wants to remove them.

Washington is also moving to severely limit who can legally buy Russian energy, and is going after what it calls Moscow’s “shadow fleet” that ship oil around the world.

US Treasury Secretary Janet Yellen said the actions were “increasing the risk of sanctions related to Russia’s oil trade, including shipping and financial facilitation to support Russian oil exports.”

President Joe Biden said Russian leader Vladimir Putin was in “tough condition,” adding: “It’s really important that he doesn’t hold his breath so he can continue to do the terrible things he continues to do.”

Ukrainian President Volodymyr Zelensky thanked the US for what he called “bilateral support”.

Since the start of the war in Ukraine, oil price cap It has been among the key measures designed to curb Russia’s energy exports.

But as Olga Khakova of the Atlantic Council’s Global Energy Center explained, her effectiveness was “diluted”. because he was also trying to prevent the volume of Russian oil on the market from falling.

This was due to concerns about the impact of supply cuts on the global economy.

But experts say the oil market is in a healthier position.

“US oil production (and exports) are at record levels and rising, so the price impact of taking Russian oil off the market, the target of today’s sanctions, will be mitigated,” said distinguished Atlantic Council member Daniel Fried. .

“The US government has gone after the Russian oil sector in a big way in an attempt to deal with what could be a body blow,” Fried added.

John Herbst, the former US ambassador to Ukraine, said that while the steps were “excellent”, their implementation would be critical.

“This means that it is the Trump administration that will decide whether these measures put pressure on the Russian economy,” he said.

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