WASHINGTON — On Friday, the Biden administration revealed that it would be intensifying sanctions on Russia’s pivotal energy sector, part of a broader strategy to penalize Moscow for its ongoing war in Ukraine, which has persisted for nearly three years. This announcement arrives as President-elect Donald Trump prepares to assume office, promising to take swift actions to end this conflict.
The newly introduced sanctions have been described by the outgoing Democratic administration as the most impactful to date, particularly targeting Russia’s oil and liquefied natural gas industries, which are vital to the country’s economy. Officials indicated that these sanctions could potentially deprive the Russian economy of billions of dollars monthly, affecting firms that engage in business with Russian entities.
The sanctions focus on over 180 oil-carrying vessels believed to be part of a covert fleet employed by the Russian government to circumvent existing oil sanctions. Additionally, traders, oil field services companies, and various Russian energy officials are included in the sanctions. Notably, several sanctioned vessels are reportedly engaged in transporting Iranian oil, as outlined by the Treasury Department.
Treasury Secretary Janet Yellen emphasized the sweeping nature of these measures, stating, “The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine. With today’s actions, we are heightening the sanctions risk involved in Russia’s oil trade, encompassing shipping and financial support for oil exports from Russia.”
In conjunction with Washington’s efforts, the United Kingdom has also imposed sanctions on Russian energy firms. Both the U.S. and U.K. have targeted major Russian oil producers, Gazprom Neft and Surgutneftegas, along with numerous subsidiaries tied to these companies. According to the British Foreign Office, these two firms together generate over 1 million barrels of oil daily, amounting to a staggering $23 billion yearly. British Foreign Secretary David Lammy pointed out that “oil revenues are the lifeblood of Putin’s war economy.”
Lammy added that “draining Russia’s oil revenues will significantly impact its war funding—every ruble taken from Putin’s hands aids in protecting Ukrainian lives.” As part of their strategy to bolster economic pressure on Moscow, the U.K. has already sanctioned nearly 100 vessels linked to Russia’s oil transport system, seeking to enhance leverage before any negotiations to conclude the war commence.
White House national security spokesman John Kirby explained the timing of these sanctions, noting that market conditions gave the administration confidence to proceed. “This was really based on market conditions,” Kirby clarified. “So the timing was fitting for this decision, and that’s why the president acted.”
In addition to the sanctions targeting energy firms, the administration also imposed travel bans on 14 senior officials and executives from Rosatom, affecting their immediate family members as well. The decision to intensify sanctions now places the ball in Trump’s court regarding their continuation or repeal after he assumes office.
While Trump’s transition team did not immediately comment on the sanctions, Kirby reassured that the outgoing administration has kept the incoming team informed on major decisions throughout the transition.
Trump’s incoming national security adviser, Mike Waltz, previously articulated a need for “economic leverage” to address Russia’s illicit oil activities in a publication ahead of the elections, with the goal of persuading President Vladimir Putin to accept negotiations. Concurrently, Trump made statements indicating that he is in discussions to arrange a meeting with Putin, highlighting his history of a friendly rapport with the Russian leader.
Criticism surrounding Trump’s past support for Putin has gained traction as he also voiced concerns over the costs associated with U.S. aid to Ukraine. Recently, he stirred skepticism about future U.S. support, indicating a preference for Ukraine to remain outside NATO—a stance he criticized the Biden administration for taking.
As the news of the new sanctions was released, the Kremlin responded dismissively, suggesting that the current U.S. administration is attempting to create a challenging legacy for the incoming Trump administration.
The sanctions are based on the authority established following Russia’s annexation of Crimea in 2014, according to administration officials. They added that if the Trump administration decides to roll back these sanctions, it would first need to inform Congress, which would hold the power to vote against such a decision.
The so-called shadow fleet employed by Russia largely consists of older tankers that have been repurposed and reflagged in non-sanctioning countries, including the United Arab Emirates. These vessels play a crucial role in allowing Russia to circumvent the $60 per barrel price cap established by Ukraine’s allies.
Furthermore, Finnish authorities are investigating a potential link between a shadow fleet vessel and the sabotage of essential underwater power and communication cables between Finland and Estonia.
Lastly, the Biden administration announced a $500 million military aid package as President Volodymyr Zelenskyy of Ukraine met with U.S. Defense Secretary Lloyd Austin. Although Zelenskyy was scheduled to meet with Biden in Italy, the president canceled his trip to manage federal efforts towards combating wildfires in Los Angeles.
Earlier in the week, Trump expressed his concern over the ongoing conflict’s toll on human life, asserting that such a war would not have materialized had he still been president.
