The United Kingdom has announced new sanctions against Russian oil giants Gazprom Neft and Surgutneftegaz, marking a coordinated effort with the United States to curb Russia’s ability to fund its military actions. The two companies, which generate an estimated $23 billion annually, are key contributors to the Russian economy.
The British government’s statement emphasized the significance of these sanctions, noting that Gazprom Neft and Surgutneftegaz produce over a million barrels of oil daily, equivalent to more than the entire GDP of Jamaica. According to officials, the revenue from these companies directly supports Russia’s war efforts.
Oil revenues accounted for roughly a quarter of Russia’s total budget in 2023, highlighting their critical role in funding the country’s military actions. The sanctions aim to significantly diminish these revenues, striking a blow to what the UK government described as the “lifeblood of Putin’s war economy.” British Foreign Secretary David Lammy underscored the moral and strategic purpose of the sanctions, stating, “We will not allow oil revenues to jeopardize the lives of Ukrainians, nor will we allow Russia to continue to threaten our collective security. Every ruble we take out of Putin’s hands helps save Ukrainian lives.”
The announcement follows the United States’ unveiling of its most severe sanctions yet on the Russian oil industry. According to documents shared by the US Treasury, the measures target more than 180 vessels, numerous oil traders, and oil service providers alongside Gazprom Neft and Surgutneftegaz. Reports of these sanctions have already influenced global markets, with oil prices rising by 3% on Friday.
Ukrainian President Volodymyr Zelenskyy expressed his support for the coordinated sanctions, emphasizing that “criminals must pay for their crimes.” The joint efforts by the US and UK are seen as a strategic move to weaken Russia’s financial capacity to sustain its military activities while sending a strong message of international solidarity with Ukraine.
Facts on Sanctions Against Russian Oil
| Entity | Details |
|---|---|
| Gazprom Neft | Produces over 1 million barrels of oil daily; contributes significantly to Russia’s war economy. |
| Surgutneftegaz | Another major oil producer; jointly earns $23 billion annually with Gazprom Neft. |
| US Measures | Target 180+ vessels, oil traders, and service providers in addition to Gazprom Neft and Surgutneftegaz. |
| Market Impact | Global oil prices rose by 3% following news of the sanctions. |
The sanctions are a calculated step to disrupt Russia’s reliance on energy revenues, which have historically been a cornerstone of its budget.
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