The News
The US Treasury ramped up sanctions against Russia’s energy sector on Friday, blocking two major oil producers and a host of other oil-carrying vessels, including both Russia-owned tankers and so-called “shadow fleet” traders.
“This action builds on, and strengthens, our focus since the beginning of the war on disrupting the Kremlin’s energy supplies…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,” Treasury Secretary Janet L. Yellen said in a statement.
The announcement comes as Ukraine cut off a transit route to export Russian gas through its territory after a pre-invasion contract expired on New Years’ Day, in what Ukrainian President Volodymyr Zelenskyy described as “one of Moscow’s biggest defeats.”
Know More
The sanctions will likely affect global oil flows: Russian oil accounts for more than a third of India’s oil imports, and Indian refiners anticipate needing to scout for crude in the Middle East and US due to sanctions-related disruptions, Reuters reported ahead of the Treasury announcement. The marine transportation arm of Russia’s state oil firm Rosneft, which in December agreed to supply an Indian private refiner nearly 500,000 barrels of crude per day, will be subject to the new restrictions.