Overview

• The Biden administration announced a comprehensive sanctions package targeting Russia's energy sector, including over 180 oil tankers, major oil producers, and natural gas projects.
• Officials estimate the sanctions could cost Russia billions of dollars per month, significantly reducing its ability to fund its war in Ukraine.
• The sanctions target two major Russian oil companies, Gazprom Neft and Surgutneftegas, as well as Russia's shadow fleet of tankers used to evade previous restrictions.
• This move, coordinated with the U.K., aims to enforce the $60 per barrel price cap on Russian oil and disrupt the Kremlin's energy trade networks.
• The timing of the sanctions reflects favorable oil market conditions and a strategic effort to constrain Russia's economy before the incoming Trump administration takes office.