Ukrainian President Zelenskyy says he is confident sanctions will ‘significantly reduce Russia’s petrodollar income’.
The United States has imposed “sweeping” sanctions on Russia’s energy sector as Washington pushes to choke Moscow’s funds for the war in Ukraine.
The sanctions on Friday targeted two major Russian oil producers and 183 vessels that help transport the petrol, as well as 80 individuals and entities involved in the production and export of liquefied natural gas (LNG) from Russia.
The sanctioned companies include Gazprom Neft and Surgutneftegas, two of Russia’s largest oil companies.
“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” US Treasury Secretary Janet Yellen said in a statement.
The United Kingdom issued similar sanctions on Thursday. “Every blow we strike against Russia’s oil revenues is another step towards a just and sustainable peace in Ukraine, and a step towards security and prosperity in the UK and beyond,” the UK government said in a statement.
For its part, the US Department of State targeted Russia’s LNG sector.
The sanctions freeze the assets of the firms and individuals in the US and make it largely illegal for American citizens to engage in financial transitions with them. Friday’s measures also expand secondary penalties for those who help Russia evade sanctions.
“These actions substantially increase the sanctions risks associated with the Russian oil trade,” the US Department of the Treasury said.
The Reuters news agency quoted an unnamed US official as saying that the logic of the sanctions “is to hit every stage of the Russian oil production and distribution chain”.
The official added that the measures should cost Russia billions of dollars per month if sufficiently enforced.
The sanctions came 10 days before President-elect Donald Trump, who has pledged to help end the war in Ukraine, takes office.
Trump suggested earlier this week that he is ready to meet Russian President Vladimir Putin.
“He wants to meet, and we are setting it up,” Trump said before a meeting with Republican governors at his Mar-a-Lago residence on Thursday.
The US has been piling sanctions on the Russian economy since Russia launched an all-out invasion of Ukraine in February 2022.
Washington and its Western allies have also provided tens of billions of dollars in military and financial aid to Kyiv to help sustain the Ukrainian war efforts.
I am grateful to @POTUS, his administration, and the entire American people for today’s announcement of a new sanctions package targeting over 400 entities linked to Russia’s energy sector. The bipartisan support of the United States truly matters, and we feel it deeply.
These…
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) January 10, 2025
After fending off Russian advances towards Kyiv early in the war, Ukraine has struggled to regain territories captured by the Russian army in its east, with the war turning into a protracted, bloody conflict.
Ukrainian President Volodymyr Zelenskyy welcomed Friday’s sanctions.
“Energy resources should never be used as weapons, as Russia does. Countries that respect international law can and should ensure stable and reliable energy supplies for the entire world,” Zelenskyy wrote in a social media post.
“We are deeply grateful for America’s leadership in holding Russia accountable. I am confident these steps will significantly reduce Russia’s petrodollar income and, with it, its ability to continue its aggression.”
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