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Oil prices jump as U.S. imposes sweeping sanctions against Russia oil industry

10 January 2025 20:16 (UTC +04:00)

Oil prices jumped more than 3% on Friday as the U.S. Treasury Department announced sweeping sanctions against Russia’s oil industry, APA reports citing CNBC.

Brent gained $2.82, or 3.67%, to $79.74 per barrel by 10:32 a.m. ET, while U.S. crude oil advanced $2.89, or 3.91%, to $76.81 per barrel.

The sanctions target Russian oil companies Gazprom Neft and Surgutneftegas and their subsidiaries, more than 180 tankers, and more than a dozen Russian energy officials and executives. The sanctioned executives include Gazprom Neft CEO Aleksandr Valeryevich Dyukov.

The sanctioned vessels are mostly oil tankers that are part of Russia’s “shadow fleet” that has dodged existing sanctions on the country’s energy exports, according to the Treasury Department.

“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” Treasury Secretary Janet Yellen said in a statement.

“With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports,” Yellen said.

Note that the U.S. has also imposed sanctions on Yusif Alakbarov, the son of Lukoil's co-owner Vahid Alakbarov; the head of Bashneft and Zarubezhneft, Kudryashov; Gazprom Neft's Moscow and Omsk oil refineries; and Surgutneftegaz's Kirishi oil refinery.