In a sweeping move against Russia’s energy industry, the U.S. Department of the Treasury announced sanctions on over 200 individuals and entities on January 10, 2025. These measures, targeting Russian oil producers, traders, and service providers, are designed to choke off a primary source of revenue funding Russia’s war in Ukraine. The sanctions include two of Russia’s largest oil companies, Gazprom Neft and Surgutneftegas, as well as more than 180 vessels, dozens of oilfield service providers, insurance companies, and energy officials.
Key Targets and Actions
The sanctions package represents one of the most extensive actions to date against Russia’s energy sector. Prominent figures such as Gazprom Neft CEO Alexander Dyukov, Lukoil President Vadim Vorobyov, and Deputy Ministers of Energy Roman Marshavin and Eduard Sheremetsev are among those sanctioned.
Treasury’s new determination under Executive Order (E.O.) 14024 authorizes sanctions against individuals and entities operating in Russia’s energy sector. “The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” said Treasury Secretary Janet Yellen. She emphasized the G7’s united front in disrupting Kremlin revenues, building on the 2022 price cap on Russian oil.
The measures also prohibit U.S. petroleum services related to crude oil production in Russia, effective February 27, 2025. These steps, Yellen noted, “ratchet up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation.”
Included in the list:
- Rosatom management;
- Deputy Ministers of Energy of Russia Roman Marshavin and Eduard Sheremetsev;
- Head of Zarubezhneft Sergey Kudryashov;
- Gazprom Neft and its head Alexander Dyukov;
- President of Lukoil Vadim Vorobyov;
- Surgutneftegaz;
- Ingosstrakh and AlfaStrakhovanie insurance companies;
- Gazprom LNG Portovaya and Gazprom Shelfproekt;
- "Achimgaz", "Rusgazburenia", "Gazprom" and "Lukoil" joint venture "Lajavozhneftegaz";
- Serbian "NIS AD Novi Sad";
- "Polar Lithium";
- "Vostok Oil";
- structures associated with the Russian project "Arctic LNG - 2" and others.
The Shadow Fleet and Opaque Oil Traders
Russia’s increasing reliance on “shadow fleet” vessels and opaque oil traders has drawn heightened scrutiny. Treasury targeted entities like UAE-based Black Pearl Energy Trading LLC, which has reportedly sold over $2 bn worth of Russian crude oil, often priced above the G7 price cap. Other sanctioned entities include UAE-based Arctos Shipping, Demex Trading Limited, and Hong Kong-based Guron Trading Limited, which collectively moved billions of dollars in Russian oil through high-risk channels.
Black Pearl’s connections to the Russian government, including involvement in Ministry of Energy projects, highlight the Kremlin’s deep ties to these opaque operations. Individuals linked to these activities, such as Denis Deryushkin and Alexander Nemirovskiy, were also sanctioned.
Central Asia in the mix
According to the Treasury, "The following entities are being designated pursuant to E.O. 14024 and E.O. 13662 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Gazprom Neft":
- Chamaiyati Doroi Masauliyati Makhdudi Gazprom Neft Tadzhikistan is a Tajikistan-based Gazprom Neft subsidiary.
- Gazprom Neft International SA is a Luxembourg-based Gazprom Neft subsidiary.
- Gazprom Neft KazakhstanLLC is a Kazakhstan-based Gazprom Neft subsidiary.
- NIS AD Novi Sad is a Serbia-based Gazprom Neft subsidiary.
- OSOO Gazprom Neft Aziya is a Kyrgyz Republic-based Gazprom Neft subsidiary.
- ZAO Munay Myrza is a Kyrgyz Republic-based Gazprom Neft subsidiary.
Global Coordination and Broader Impacts
The sanctions extend to Russian liquefied natural gas (LNG) projects and other key energy initiatives, such as Arctic LNG-2 and Vostok Oil. The U.S. State Department blocked third-party entities supporting Russia’s energy exports, including Serbian oil company NIS AD Novi Sad and UAE-based financial intermediaries.
Additionally, insurance companies like Ingosstrakh and AlfaStrakhovanie, which facilitate oil shipments, are now blacklisted. Energy officials from Rosatom and Zarubezhneft also face individual sanctions, further isolating Russia’s energy sector from global markets.
Economic and Political Implications
The new measures aim to deepen Russia’s financial struggles by targeting its energy revenue, a critical lifeline for its economy. Treasury’s amended General License 8L, which limits wind-down transactions related to Russian energy, underscores the U.S.’s strategy to weaken Russia’s ability to sustain its military operations.
Yellen remarked, “This action builds on, and strengthens, our focus since the beginning of the war on disrupting the Kremlin’s energy revenues, including through the G7+ price cap launched in 2022.”
Russian Companies in Uzbekistan
Out of the entities mentioned on the list Lukoil, Rosatom and Gazprom Neft are operating in Uzbekistan, however, none of the Uzbekistan-based companies are under sanction. On the other Gazprom Neft subsidiaries based in Tajikistan, Kazakhstan and Kyrgyzstan are on the sanctions list.
Lukoil has been operating in Uzbekistan since 2018, while Gazprom Neft opened a representative office in September 2024 with plans to establish a network of filling stations in the country. Uzbekistan and Kazakhstan inked a two-year purchase agreement in 2023 and in the first 9M24 generated $1.15bn revenue for Gazprom Neft.
Rosatom and Uzbekistan signed a protocol in September 2024 initiating design and engineering assessments for the project in which Rosatom will construct two VVER-1200 units (low-power plants), each generating 1.2 GW of power in the Jizzakh region of Uzbekistan. This project will take around six years to be completed.
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