Daijiworld Media Network - Washington
Washington, Jan 10: The Biden administration announced on Friday an expansion of sanctions targeting Russia’s energy sector, aiming to escalate economic pressure on Moscow for its ongoing war in Ukraine. These new sanctions are considered the most significant to date, focusing on Russia’s oil and liquefied natural gas sectors, critical drivers of its economy.
The sanctions target over 180 oil-carrying vessels suspected of being part of a ‘shadow fleet’ used by the Kremlin to bypass oil sanctions, along with traders, oil service firms, and Russian energy officials. Some of these vessels are also believed to be transporting sanctioned Iranian oil.
Treasury Secretary Janet Yellen described the action as ‘sweeping,’ aimed at draining Russia’s key revenue source that funds its war efforts. She added that the sanctions are designed to increase risks associated with Russia’s oil trade, including shipping and financial facilitation.
In a coordinated effort, the UK also imposed sanctions on Russian energy companies Gazprom Neft and Surgutneftegas, which together produce over 1 million barrels of oil daily, worth $23 billion annually. British foreign secretary David Lammy emphasized that the sanctions would directly target Russia's war economy, helping to save Ukrainian lives.
While the Biden administration has rolled out the sanctions, it remains to be seen if President-elect Donald Trump, who takes office on January 20, will continue or reverse them. Trump, who has previously voiced a desire to end the war quickly, has also been criticized for his past favourable stance toward Russian President Vladimir Putin.
The Kremlin dismissed the sanctions as part of the outgoing administration's attempt to leave a difficult legacy for the incoming Trump administration. If the Trump administration decides to lift the sanctions, it would need to notify Congress, where a vote of disapproval could take place.
As the conflict continues, the U.S. has also provided Ukraine with a new $500 million military aid package, underscoring its continued support for Kyiv despite future uncertainties under the new leadership.