The sanctions squeeze on Russian oil is tightening!
The sanctions squeeze initiated by the US and G7 countries on Russian oil continues to grow. Russia's major customers are cutting off oil purchases, citing the threat of sanctions.
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Since the war between Russia and Ukraine began on February 24, 2022, Indian oil refineries—which are Moscow's second-largest customers after China—will no longer accept tankers owned by the state-operated Sovcomflot due to the risks created by sanctions.
Since the beginning of October, the US has increased sanctions on a wider fleet of tankers carrying Russian crude oil.
This move has the potential to gradually shrink Russia's oil revenues, which is one of the primary policy goals of the US and its allies.
40 TANKERS ON THE SANCTIONS LIST
On the other hand, the US has sanctioned 40 separate Russian oil tankers since October 2023.
Richard Bronze, an expert at the consulting firm Energy Aspects, said, "There is increasing pressure on Russia's exports, particularly to India. We are at a stage where the friction related to sanctions has become very apparent."
Greg Brew, an analyst at the Eurasia Group in New York, stated, "We are definitely seeing an increase in US sanctions pressure on both Russian crude oil and its exports. This comes at a time when the US is struggling to send more aid to Ukraine, Ukraine's fortunes on the battlefield are beginning to wane, and Russia is gaining the upper hand."
"WE WELCOME IT"
A US Treasury spokesperson commented, "We expect and welcome global oil buyers being less willing to do business with Sovcomflot than they have in the past."
Meanwhile, another setback for Moscow has emerged in refined fuel sales.
According to Kpler data, an average of 6.2 million barrels of Russian diesel were released to the market in the 10 days leading up to March 17. This figure was recorded as the highest level seen since at least 2017.