In the final days of the Biden administration, the US is tightening the noose on Putin with new measures and to greatly increase the influence that Donald Trump will have in negotiations with Russia to end the war in Ukraine.
The American Treasury and the State Department have imposed new sanctions, which hit, among others, two great powers, China and India, destinations of exports made through Moscow’s “ghost” fleet. Thus, the Russian treasury will be directly affected, and the war machine will be greatly weakened.
The US sanctions also target Russia’s two biggest energy companies, Surgutneftegas and Gazprom Net, and specifically Moscow’s vast fleet of more than 160 oil tankers, according to SMH.
The Treasury has imposed sanctions on about 100 entities in Russia’s energy, defense and financial sectors, in a move that brings those sanctions under a US law that requires Congress to have 30 days to consider any withdrawal of on the list.
The measure has been described as an attempt to put the sanctions “Trump-proof,” ensuring that Congress can thwart any attempt to loosen sanctions if it chooses.
Also on Wednesday, the US State Department sanctioned more than 150 new entities and individuals, targeting Russia’s defense industry and its international suppliers, including Chinese companies that provide Russia with “dual-use” technology.
The new moves follow last Friday’s imposition of what the Treasury described as “radical action” to cut Russia’s energy revenues, including sanctions on two of Russia’s biggest oil companies, which secure Russian oil cargoes, LNG and oil projects , energy exporters, oil fields, service providers and more than 180 vessels, including 160 tankers.
Chinese energy pipeline company Shandong United Energy, which the Treasury said “facilitated port calls and discharges” of oil from Russia, was also on the sanctions list. US Treasury Secretary Janet Yellen said on Friday that the actions were aimed at Russia’s key source of revenue to finance the war in Ukraine.
The US is disrupting the flow of Russian oil to China and India
It is clear that US sanctions are disrupting the flow of Russian oil to India and China. India and China have become crucial buyers of Russian oil as Western sanctions and price caps imposed by the G7 countries in 2022 have pushed Russian crude trade away from Europe, according to One India.
A significant portion of this oil was transported using oil tankers, which are now caught in the crosshairs of new US sanctions. Given that these tankers were responsible for transporting more than 530 million barrels of Russian crude last year, they are now blacklisted and the flow of Russian oil to the world’s two largest oil importers is drastically reduced.
At least 4.4 million barrels of crude oil from Russia are currently being shipped to India, according to vessel tracking data compiled by Bloomberg and Kpler. Some of these travel on newly sanctioned tankers and the fate of some of the cargoes is unknown.
There is a wind-down period until February 27, 2025 for parties to complete transactions with entities and vessels that have now received sanctions. But Indian refiners are eager to settle payments and steer clear of sanctioned tankers in the future.
Indian refiners have stopped doing business with Russian oil companies and companies sanctioned by the US on Friday, an Indian government source told Reuters on Monday. A quarter of the Russian fleet is now believed to have been sanctioned. India does not expect major disruptions during the winding down period till March. But, “going forward, it’s still too early to predict the impact, how the cuts will shape up, if someone is willing to sell below the $60 price cap,” an Indian government source said earlier this week.
In the first 11 months of 2024, India’s Russian crude imports rose 4.5% to 1.764 million barrels per day (bpd), accounting for 36% of the country’s total crude imports. Similarly, China’s imports, including pipeline supply, reached 2.159 million, accounting for 20% of its total imports.
These figures underscore the critical role that Russian oil plays in fueling the economies of both countries. However, the new sanctions threaten to cut off this steady supply, pushing both countries to seek alternative sources of crude oil, particularly in the Middle East.
Source: ziare.com
