Biden administration introduces new round of sanctions against Russian oil exporters

2/1/2025 12:49:11 AM

(MENAFN) As 2025 began, the Biden administration introduced a new round of sanctions against Russian oil exporters, marking one of the most significant packages to date. These sanctions target major Russian oil companies gazprom Neft and Surgutneftegaz, already under previous restrictions on financing and technology. This time, the sanctions are directed at 183 vessels, including the so-called "shadow fleet" tankers that transport Russian oil. These tankers are believed to carry about a third of Russia’s oil exports, and the move aims to squeeze Russia’s oil sector. The US and EU hope to endure any price increases until oil prices stabilize.

India, a key consumer of Russian oil, immediately reacted to the sanctions. A senior official in New Delhi revealed that state-run refineries would halt processing oil from the sanctioned tankers. India is exploring alternative Middle Eastern suppliers and looking into other strategies to avoid secondary US sanctions. This situation is concerning, but India has several options to navigate the sanctions, particularly through the flexibility offered by the “shadow fleet” and private refineries that may continue to source Russian oil.

While the sanctions could impact global oil prices, the primary concern for the US isn’t European consumers but maintaining good relations with India, a strategic partner in South Asia. The US is unlikely to jeopardize its relationship with New Delhi over temporary sanctions on Russia. The key issue is how long India will continue to work around the sanctions. Throughout the Ukraine conflict, India skillfully managed Western pressure to align with them while securing affordable Russian oil. However, with India increasingly positioning itself as a peacemaker, its stance on these sanctions may evolve over time.

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