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U.S., U.K. Impose Toughest Russia Oil Sanctions, Target Gazprom Neft, 180 Vessels

Jan 10, 2025, 03:15 PM

The United States Treasury Department, under the outgoing Biden administration, has announced sweeping new sanctions against Russia's oil industry, imposing some of the toughest measures yet in an effort to further limit Russia's oil production and exports. The sanctions, coordinated with the United Kingdom, target major Russian oil producers Gazprom Neft and Surgutneftegas, along with their subsidiaries. Additionally, over 180 vessels—including many from Russia's 'shadow fleet'—involved in transporting Russian crude oil and fuel have been designated. Major Russian ship insurance providers Ingosstrakh and Alfastrakhovanie are also sanctioned, as well as dozens of oil traders and Russia-based oilfield service providers. High-ranking executives, including Lukoil CEO Vorobyev, Surgutneftegas CEO Vladimir Bogdanov, Gazprom Neft CEO Alexander Dyukov, and the son of former Lukoil CEO Vagit Alekperov, are among those targeted. The sanctions aim to disrupt Russian oil exports to key buyers like India and China, with Indian refiners bracing for potential supply disruptions. The announcement has led to a surge in global oil prices, which climbed nearly 3%, reaching a near five-month high. However, there is uncertainty whether the incoming Trump administration will enforce these new sanctions.