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Kremlin Responds to New US Sanctions Against Russian Energy Trade

By Vusala Abbasova January 16, 2025

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On Friday, the US Treasury Department imposed fresh sanctions on Russia's energy sector, targeting major companies like Gazprom Neft and Surgutneftegaz, as well as oilfield service providers and traders.

The Kremlin has vowed to find alternative ways to supply its energy resources following the latest US sanctions targeting Russia’s oil and gas revenues. 

Kremlin spokesperson Dmitry Peskov made it clear that Russia would take steps to minimize the effects of these measures, which he believes could destabilize global energy markets.

“First of all, of course, measures will now be taken and options will be sought to minimize the consequences of these sanctions,” the Kommersant newspaper quoted Peskov as saying on Monday.

He emphasized that energy supply routes could not simply be cut off, as alternative options inevitably emerge.

“We will look for work options that will subsequently minimize the effects of sanctions,” Peskov told reporters.

On Friday, the US Treasury Department imposed fresh sanctions on Russia's energy sector, targeting major companies like Gazprom Neft and Surgutneftegaz, as well as oilfield service providers and traders.

A senior US official described it as “the most significant sanctions yet against the Russian energy sector”, but it is seen as an attempt to give Kyiv and the incoming administration of Donald Trump leverage to reach a deal for peace in Ukraine. A senior US official stated they were designed to pressure Moscow while bolstering Kyiv. 

As a result of the newly-imposed sanctions, sixty-five oil tankers reportedly halted operations globally. According to MarineTraffic and LSEG ship tracking data cited by Reuters, five of these tankers are anchored near China and Singapore, with others idling in the Baltic Sea and near Russia’s Far East. Many of these ships were previously transporting Russian oil to India and China, following shifts in trade routes after Western nations imposed a price cap on Russian oil in 2022.

The sanctions had an immediate impact on global oil markets. Brent crude prices rose to $81.11 per barrel on January 13, their highest level since August 2024. Goldman Sachs has predicted a further increase, estimating prices could reach $90 per barrel in the coming months.

Since the beginning of the Ukraine invasion, the US has provided $64 billion in military aid to Ukraine, including $500 million this week for air defense missiles and fighter jet support equipment.

In response to Western embargoes and price caps, Russia has increasingly relied on a "shadow fleet" of aging tankers to transport oil. These vessels, often insured and operated through intermediary companies, allow Russia to evade sanctions.

Western governments have escalated efforts to crack down on this network, targeting vessels, insurers, and individuals involved in sanctions violations. However, Moscow continues to adapt, seeking new trade routes and methods to sustain its energy exports.