US Ramps Up Pressure on Russia With Fresh Energy Sanctions

(Bloomberg) —

The US imposed its most aggressive sanctions on Russia’s oil industry yet as the Biden administration looks for last-minute ways to boost Ukraine’s leverage in possible peace negotiations after Donald Trump takes office.

The measures announced Friday targeted two firms that handle more than a quarter of Russia’s seaborne oil exports, as well as vital insurers and traders linked to hundreds of cargoes. The US also broadened sanctions on tankers that have already proved disruptive.

In a statement, Treasury Secretary Janet Yellen said the moves are aimed at “ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”

Friday’s measures move well beyond previous sanctions measures the US has rolled out against Russia as part of efforts to choke off its war machine following the invasion of Ukraine in 2022. While Trump could lift the sanctions at any time, he may find it politically unpalatable to do so given the broad bipartisan support in Washington for Ukraine. 

The main target of the sanctions, done in coordination with the UK, are major Russian energy companies — Gazprom Neft and Surgutneftegas. The two firms exported about 970,000 barrels a day of oil by sea in the first 10 months of 2024, about 30% of the nation’s total flows on tankers, data compiled by Bloom