The European Union and the United States simultaneously imposed new punitive measures on the Russian energy sector. Both oil and gas are covered by the sanctions, with Brussels and Washington trying to further deplete the Kremlin's war chest.
The key part of the European package is the ban on importing and trading liquefied natural gas (LNG) from Russia. Short-term contracts will expire within six months, and long-term agreements will end no later than January 1, 2027.
According to European government leaders, it is a historic decision that deals a severe blow to Moscow's war machine. The measures aim not only to financially impact Russia but also to reduce Europe's energy dependency.
The sanctions affect the global oil market. As China and India look for new suppliers, prices for oil from other regions are rising. Traders expect transport costs and insurance premiums to increase as well.
Another focus of the package is that the EU is, for the first time, also imposing sanctions on foreign companies that facilitate Russian exports. Businesses in Asia are particularly affected.
The sanctions list includes Chinese refineries Liaoyang Petrochemical and Shandong Yulong, as well as the trading company Chinaoil Hong Kong. According to the EU, they buy large quantities of Russian oil and thus constitute an important source of income for Moscow.
The United States targets the Russian oil giants Rosneft and Lukoil and their dozens of subsidiaries with its own sanctions. Washington says these companies partially finance the Kremlin's war.
Because of the US measures, major Chinese state oil companies have temporarily suspended their purchases of Russian oil by sea. They fear being affected by the American sanctions themselves.
Simultaneously, Europe is further tackling the Russian shadow fleet. More than five hundred ships transporting Russian oil will no longer have access to European ports or services.
Together, the decisions by the EU and the US represent the heaviest coordinated wave of sanctions since the start of the war in Ukraine. Their joint goal: to economically weaken Russia and continue political support for Ukraine.