🌍 International Affairs | US Escalates Sanctions on Russian Oil Trade

🛢️ New Sanctions Shake Global Oil Markets and Impact India-China Trade Flows

In a major diplomatic move just days before exiting office, US President Joe Biden’s administration has announced comprehensive sanctions targeting Russia’s oil trade, marking one of the most aggressive efforts to disrupt Russian petroleum exports since the invasion of Ukraine.

🚫 What Do the Sanctions Include?

• ✅ 160 oil tankers — doubling previous sanction targets.
• ✅ Two major oil producers: Surgutneftegas and Gazprom Neft.
• ✅ Opaque trading firms facilitating oil deals.
• ✅ Russian insurance companies like Ingosstrakh and Alfastrakhovanie Group.
• ✅ A Chinese terminal operator: Shandong United Energy Pipeline Transportation Co.

🏭 Who’s Affected?

• Surgutneftegas & Gazprom Neft ship 970,000 barrels per day — critical suppliers for Indian refineries and Chinese state-run firms.
• Shipping routes could face increased risk and insurance gaps, making it harder to move Russian oil globally.
• Traders in high-risk jurisdictions are under direct scrutiny, limiting their ability to do business.

💰 Market Reactions

• Brent Crude prices surged past $80 per barrel, reflecting fears of reduced supply.
• The International Energy Agency (IEA) expects a 1 million barrels/day surplus, but sanctions could offset this cushion.

🔍 China in the Crosshairs

For the first time, Chinese infrastructure has been sanctioned — Shandong United Energy supports Russia’s state tanker fleet, indicating Washington’s growing willingness to pressure third parties supporting Moscow.

“This move signals a warning to all — supporting sanctioned Russian energy firms comes with consequences.”

⚖️ Enforcement Challenges & Global Implications

• Much depends on whether the next US administration continues to enforce and expand these measures.
• Early signs suggest that buyers in India and China are avoiding sanctioned tankers, reshaping the dynamics of oil trade.

🔧 Impact on Oil Services

• US oil service firms must exit Russian operations by February 27, 2025.
• While domestic Russian firms manage most existing fields, new projects — especially in Arctic and offshore zones — may suffer without Western tech.

📌 Quick Recap

🧭 What Lies Ahead?

The global oil trade is entering a new era of scrutiny. The US-led sanctions now cast a wider net, forcing global buyers — especially in the Global South — to reassess risks, reduce dependency, or explore alternative channels.

As always, energy security and geopolitics go hand in hand. 🛰️🌐