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The Biden administration on Friday imposed sanctions on Russia’s energy sector, targeting Moscow’s oil revenues, just days before Donald Trump’s inauguration.
The measures include sanctions on Russian oil producers Gazprom Neft and Sergutneftegas, and the blacklisting of 183 vessels involved in Russian energy exports.
Dozens of traders, Russian-based oilfield service providers and energy officials were also targeted.
The US Treasury said Britain would cooperate with Washington in imposing sanctions on the two major oil producers.
Brent oil, the international benchmark, rose nearly 4 percent on Friday to $79.84 a barrel, a three-month high.
The outgoing Biden team said it was able to make such a significant move against Russia’s energy sector, the country’s largest and highest source of revenue, as oil markets are expected to be oversupplied by 2025.
It also saw US inflation fall below the 2 percent target set by the Federal Reserve.
“To put it bluntly, the context has changed, and it’s time to change our strategy,” said a senior Biden administration official.
The last-minute move poses a challenge to President-elect Trump, who has campaigned for a quick end to the war between Russia and Ukraine, and who expressed doubts about imposing more sanctions in September, saying “I want to use as little sanctions as possible.”
If he tries to reverse the measures, Trump could face pressure from Congress, where Republicans have urged President Joe Biden to do more to curb Russian energy revenues.
Under existing sanctions authorities, if Trump tries to reverse the new measures, Congress would be notified and could vote on a countermeasure.
The outgoing Biden team said the sanctions would be an important tool for the new Trump administration, which has distanced itself from Biden’s Ukraine strategy.
On the campaign trail, 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.
Another senior Biden administration official said, “The next administration has to make a decision about what they want to do, but we think that by taking these steps, we will put them in a better position to help them find a just and lasting peace from this conflict.” he said.
As part of the package, the State Department banned two active Russian liquefied natural gas facilities, a major Russian oil project and foreign firms that support Russian oil exports.
It also blacklisted Russian-based oil service providers and senior officials of state-run nuclear power company Rosatom.
Adding 183 ships directly to sanctions lists, rather than the companies they manage or own, could have far-reaching consequences.
FT analysis We found that the reason the 54 oil tankers previously embargoed by the US were forced to carry oil was because their partners were at greater risk of doing business with them.
Some of the vessels sanctioned on Friday were listed for “making port calls in Russia, where oil is consistently above the $60 price ceiling for Russian-origin crude oil.”
From December 2022, Ukraine’s allies have sought to keep Russian oil flowing, but have sought to limit the Kremlin’s revenue from the trade by capping prices.
Ingosstrakh, a large Russian company It was previously identified by the FT As a significant insurer of shadow ships, it has also been added to the list.
The new sanctions, if fully implemented, would hurt Russia’s oil revenues and increase energy costs by billions a month, the first Biden administration official said.
US Treasury Secretary Janet Yellen said: “We are addressing the risks of sanctions associated with Russian oil trade, including shipping and financial facilitation to support Russian oil exports.”
In the year
Friday’s actions follow the Biden administration’s decision in November 2024 to impose sanctions on Russian state-owned Gazprombank, the main conduit for energy payments to Russia, in an effort to fund the Kremlin’s war effort.
