U.S Sanctions Over 180 Shadow Fleet Tankers & Energy Giants To Disrupt Russian Oil Trade

The United States has announced new sanctions targeting over 200 entities and individuals linked to Russia’s energy sector, including more than 180 vessels.

The U.S. Department of State is sanctioning nearly 80 entities and individuals, including those involved in producing and exporting liquefied natural gas (LNG) from Russia.

The sanctions also target people connected to expanding Russia’s oil production and those involved in Russia’s metals and mining industries. Senior officials from Russia’s state-run atomic energy company, Rosatom, are also on the list.

At the same time, the U.S. Department of the Treasury is sanctioning over 150 entities and individuals, including major Russian oil companies like Gazprom Neft and Surgutneftegas.

The sanctions also block Russian ships, many from what’s known as the “shadow fleet,” which helps Russia evade sanctions and keep exporting oil.

Treasury Secretary Janet Yellen said the actions are meant to increase pressure on Russia by making it harder for the country to access services and insurance needed for its oil exports.

The U.K. and other G7 countries are also joining the U.S. in these efforts, aiming to cut off Russia’s energy revenue and weaken its ability to continue the war.

The global oil supplies are more stable now, and inflation has eased, making it a good time to impose tougher measures on Russia without causing a global energy crisis.

A key part of the sanctions targets Russia’s shadow fleet, a group of aging tankers that operate outside the reach of Western regulations. These tankers have allowed Russia to continue shipping oil despite restrictions on its energy exports.

The sanctions aim to close this loophole, making it harder for Russia to ship oil, even at market prices.

Although Russia’s economy has remained surprisingly resilient, these sanctions are expected to greatly impact its oil revenue, potentially costing billions of dollars each month.

The full impact of these measures will depend on how well they are enforced by the next U.S. administration.

Reference: U.S Department of State

Source: Maritime Shipping News