US and UK will target Russia’s energy sector with new sanctions as Biden prepares to leave office
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Biden administration officials say the sanctions being imposed now because they are not likely to add to inflation. The United States and United Kingdom are unveiling what are being described as the harshest sanctions targeted at Russia’s energy sector since Moscow’s troops began its nearly three-year-old war on Ukraine in early 2022.
![[The Biden administration is adding new sanctions to cut off funds for Russia’s war on Ukraine.]](https://static.independent.co.uk/2025/01/10/07/GettyImages-2192460991.jpg)
The sanctions will cover two major Russian petroleum producers and exporters — Gazprom Neft and Surgutneftegas — both of which are involved in the export of liquified natural gas and efforts to expand the Russian energy sector into the Arctic. They are expected to cut off Moscow’s revenue stream to the tune of billions of dollars per month, putting new strain on Russian president Vladimir Putin’s war effort against Ukraine.
Separately, the State Department will also block what a White House fact sheet described as “two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports” from access to the American financial system and adding “numerous Russia-based oilfield service providers and senior officials of State Atomic Energy Corporation Rosatom” to its list of “designated entities” who are banned from the United States.
Treasury Secretary Janet Yellen said in a statement that the U.S. is “taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine.”. “This action builds on, and strengthens, our focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including through the G7+ price cap launched in 2022. With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports,” she said.
