Pictured Mendeleev Prospect. Photo courtesy Sovcomflot
By Malte Humpert (gCaptain) – In an unprecedented move targeting Russia’s energy sector the U.S. Department of the Treasury announced sanctions against more than 180 vessels, dozens of oil traders, oilfield service providers and insurance companies.
The measures are aimed at further reducing Russian revenues from energy exports.
“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” announced Secretary of the Treasury Janet Yellen.
“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 continued.
The measures block two major Russian oil producers, Gazprom Neft and Surgutneftegas, and the country’s largest shipping operator Sovcomflot. The sanctions target 69 vessels owned by Sovcomflot, including 54 oil and product tankers and four LNG tankers.
Sanctions are also directed at oil traders dealing in Russian oil, oilfield service providers and Russian energy officials.
The measures are aimed at substantially increasing the sanctions risks for anyone associated with the Russian oil trade. Indian refiners brace for major supply disruptions as a result of sanctions, Reuters reports.
Unprecedented in scope the latest sanctions target more than 180 oil and gas carrying vessels, including those part of Russia’s “shadow fleet.” The list of newly sanctioned vessels includes four LNG carriers: Christophe De Margerie, Pskov, Velikiy Novgorod, and Vostochny Prospect.
While the primary focus of this latest round of sanctions rests with Russia’s oil sector, the announcement also hints at further measures against Russia’s LNG sector.
“The Department of State is also taking steps to reduce Russia’s energy revenues by blocking two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports,” the Treasury press release reads.
Russia currently operates five LNG projects. Yamal LNG, Sakhalin-II, Cryogas-Vysotsk, Portovaya LNG, and Arctic LNG 2.
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