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| US President Joe Biden apply new sanctions to quit Russia | Photo: Pixabay |
The United States and the United Kingdom have imposed new sanctions to reduce Russia's energy revenue.
According to BBC news, the United States has imposed many sanctions since the start of the Russia-Ukraine war. But it has never imposed such strict sanctions as this one.
This time, sanctions have been imposed on more than two hundred companies and individuals. Among them are businessmen, as well as administrative officials, insurance companies, and hundreds of oil tankers. Another thing is that this is the first time since the war began that the UK has directly imposed sanctions on the Russian energy company Gazprom and several other companies.
UK Foreign Secretary David Lammy said sanctions on Russian oil companies would reduce their war capabilities. The more rubles they take away from Putin, the weaker they will be.
Some of the measures taken by the US Treasury Department last Friday will be converted into law. This means that the Trump administration will have to approach Congress to repeal these laws.
Not only that, they are also going to impose strict restrictions on who can legally buy Russian oil. In addition, Washington will also crack down on Moscow's secret oil tankers, through which they supply oil around the world.
US Treasury Secretary Janet Yellen said that the new measures the United States is taking are tightening sanctions on Russia's oil transportation and financial sectors. US President Joe Biden believes that Russian President Vladimir Putin is facing a difficult situation. He needs to be kept uncomfortable so that he cannot do bad things like this war again; although Russia has kept its economy strong by selling oil through different routes and to different customers.
The measures the United States is taking could increase gas prices in the United States by three to four cents per gallon. But Janet Yellen noted that these US measures will have a major impact on the Russian economy.
Meanwhile, Ukrainian President Vladimir Zelensky thanked the United States for these new measures.
The United States has been imposing price controls on Russian oil since the start of the Russia-Ukraine war to reduce its oil revenues. Analysts say the impact of the US actions has been limited. They say the sanctions were originally intended to reduce Russian oil supplies.
However, concerns about the impact of reduced oil supplies on the market have made the supply cuts ineffective.
Western sanctions on Russia have boosted the country's trade with China and India. It is developing a strategic relationship with China in particular. It already has one with India. The Russian economy did well in 2023 due to increased trade with these two superpowers of the global economy. They even grew faster than the United States that year.
Analysts say the oil market is in better shape than ever. The Atlantic Council, a consulting firm, says that US oil production and exports are now at record highs; this trend continues. As a result, even if Russian oil supplies decrease, the market will not have much of an impact.
In this situation, analysts believe that after January 20, the Trump administration will have to consider whether these US initiatives will have any effect on the Russian economy.