Overview

• The Biden administration announced its most extensive sanctions yet on Russia's oil and gas industry, targeting Gazprom Neft, Surgutneftegas, and a major Arctic LNG project.
• Over 180 oil tankers, many part of Russia's 'shadow fleet,' and dozens of oilfield service providers and traders were sanctioned to disrupt Russia's global energy exports.
• The measures aim to significantly reduce Russia's energy revenue, which accounts for over a third of its federal budget, and weaken its ability to fund the war in Ukraine.
• Ukraine's President Zelenskiy welcomed the sanctions, asserting they will expedite peace efforts by cutting Kremlin income from oil and gas sales.
• Analysts suggest the sanctions' effectiveness will depend on compliance by major Russian oil buyers like China, India, and Turkey, who have previously bypassed Western measures.