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The Biden administration imposed sweeping sanctions on Russia’s energy sector aimed at Moscow’s oil revenues, days before Donald Trump took office on Friday.
These measures include sanctions on Russian oil producers Gazprom Neft and Sargutneftegas and the blacklisting of 183 vessels involved in Russian energy exports.
Dozens of traders, Russia-based oilfield service providers and energy officials were also targeted.
The US Treasury said the UK would also implement sanctions on two major oil producers in coordination with Washington.
International benchmark Brent oil rose nearly 4 percent to $79.84 a barrel on Friday, a three-month high.
The outgoing Biden team said it was able to make such significant moves in Russia’s energy sector, the country’s largest and most significant source of revenue, because oil markets are expected to be oversupplied in 2025.
It also noted that US inflation fell within the range of the Federal Reserve’s 2 percent target.
“To put it bluntly, the context has changed, and so the moment was right to change our strategy,” said a senior Biden administration official.
The last-minute move poses a challenge to President-elect Trump, who has campaigned on a quick end to the war between Russia and Ukraine and expressed skepticism about imposing additional sanctions, saying in September: “I want to use sanctions as much as possible.”
If he tries to undo those steps, Trump could face pressure from Congress, where Republican members have called on President Joe Biden to do more to crack down on Russian energy revenues.
Under existing sanctions authority, Congress would be notified if Trump tried to overturn the new measures and could vote on a resolution to disapprove.
The outgoing Biden team said the sanctions would be a useful tool for the new Trump administration, which has largely distanced itself from Biden’s Ukraine strategy.
During the campaign, Trump promised to end the war between Russia and Ukraine within 24 hours, although he now says he will try to end it within six months.
“The next administration has to decide what they want to do, but we think that by taking these steps it puts them in a better position to help them find a just and sustainable peace from this conflict,” another senior Biden administration official said. said
As part of the package, the State Department blocked two active Russian liquefied natural gas facilities, a large Russian oil project and foreign companies supporting Russian oil exports.
It blacklisted senior officials of Russia-based oilfield services provider and state-run nuclear power company Rosatom.
Adding the 183 ships directly to the sanctions list, rather than the companies that operate or own them, could have a significant impact.
FT analysis It found that the 54 oil tankers previously blocked by the US were forced to carry dramatically less oil as it became risky for their adversaries to do business with them.
Some of the vessels sanctioned on Friday were listed as “calling at a Russian port where oil has consistently traded well above $60 for Russian-origin crude”.
Since December 2022, Ukraine’s allies have tried to keep Russian oil flowing but put a cap on prices to limit the Kremlin’s revenue from the trade.
Ingosstrakh, a large Russian company Formerly identified by FT Shadow Fleet has also been added to the list as a significant insurer of vessels.
If the new sanctions are fully implemented, they will reduce Russia’s oil revenues and increase its energy costs by billions each month, the first Biden administration official said.
US Treasury Secretary Janet Yellen said, “We are increasing the risk of sanctions involving Russian oil trade, including shipping and financial facilities in support of Russian oil exports.”
The United States has imposed more than 5,000 sanctions and export controls on Russia since launching a full-scale invasion of Ukraine in February 2022.
Friday’s moves follow the Biden administration’s November 2024 decision to authorize Russia’s state-owned Gazprombank, the main carrier of Russian energy supplies, as part of efforts to limit the Kremlin’s ability to finance the war effort.
