Russia’s Foreign Ministry has denounced the latest round of US sanctions targeting its energy sector. The ministry called the measures an attempt to harm its economy while risking instability in global markets. While it was being hoped that once Donald Trump comes to power there can be some kind of peace deal between the USA and the Vladimir Putin led Russia, however it seems that the Biden administration is making all efforts to sabotage a potential peace accord.
Despite the sanctions, Moscow stated it would continue pursuing major oil and gas projects and will reinforce its role as a “key and reliable player in the global fuel market.”
Biden imposed new sanctions on Russia before leaving the White House. On 10 January, the Biden administration imposed sanctions, the most extensive package the US imposed so far, to target Russia’s oil and gas revenue streams.
The US Treasury Department has blacklisted Gazprom Neft, Surgutneftegas, and 183 vessels involved in transporting Russian oil. It also includes many from the so-called shadow fleet operated by non-Western companies. The UK government also announced parallel sanctions against Gazprom Neft and Surgutneftegas. The UK government stated that their profits were “lining Putin’s war chest and facilitating the war” in Ukraine.
Russia’s Foreign Ministry criticized the action as “hostile actions” aimed at destabilizing the country. “The sanctions are an attempt to inflict at least some damage to the Russian economy, even at the cost of destabilizing world markets as the end approaches of President Joe Biden’s inglorious tenure in power,” read the ministry’s statement.
The statement blamed the US for dragging the global energy sector into a “hybrid war”. Russia further criticized what it called the “convulsions in the White House” and “Russophobic lobby in the West.” However, Russia reaffirmed its commitment to maintaining its position in the international energy market.
The sanctions aim to support Ukraine and the incoming US administration in negotiating an end to the war. Ukrainian President Volodymyr Zelensky praised the measures, stating they would “deliver a significant blow” to Russia’s economy. “The less revenue Russia earns from oil … the sooner peace will be restored,” he said.
Gazprom Neft and Surgutneftegas, key players in Russia’s energy sector, reportedly produce over 1 million barrels of oil daily, generating approximately $23 billion in annual revenue.
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The US and its allies have increased pressure on Russia. It is expected that Moscow will respond with adjustments to its foreign policy strategy. However, the broader impact of these sanctions on the global energy market remains uncertain.
Russian President Vladimir Putin remains defiant against the specific targeting of Russia’s oil sector especially since the war with Ukraine began. Putin has criticized the west for trying to damage the Russian economy, Moscow also believes that attempts are being made to preempt and destroy any kind of future peace endeavors that might be made possible under the coming Donald Trump administration.
