US and UK imposed devastating sanctions on Russia’s oil sector

The United States and the United Kingdom have imposed their most extensive sanctions to date on Russia's oil industry, targeting nearly 200 vessels, key oil companies, and associated entities, the Office of Foreign Assets Control (OFAC) announced on January 10.

According to Treasury Secretary Janet Yellen, the measures are part of a broader effort to cut off Russia's primary source of revenue for financing its war against Ukraine. "The United States is taking sweeping action against Russia's key source of revenue for funding its brutal and illegal war against Ukraine," Yellen stated.

The sanctions specifically target more than 180 vessels within Russia's "shadow fleet," a group of tankers allegedly used to evade existing sanctions. Many of these ships are also reportedly engaged in transporting sanctioned Iranian oil.

The measures also include restrictions on two major Russian oil companies, Gazprom Neft and Surgutneftegaz, as well as dozens of their subsidiaries. Combined, these companies produce over 1 million barrels of oil daily, generating approximately $23 billion in annual revenue, according to the U.S. Treasury.

Furthermore, the sanctions target numerous Russian energy officials and corporate executives, tightening restrictions on Moscow's oil sector even further.

In addition to sanctions, Ukraine has disrupted Russia's oil production through targeted drone strikes on critical infrastructure. Refineries in Tuapse, Ilyich, and Novoshakhtinsk have either reduced or suspended operations due to the combined impact of sanctions and Ukrainian attacks.

Kremlin would like to see Trump and Putin meet, but there are no specifics yet

The Kremlin has expressed its readiness for discussions and a meeting with U.S. President-elect Donald Trump, but specific plans have yet to be established. Kremlin spokesperson Dmitry Peskov stated that any potential meeting would be considered only after Trump's inauguration on January 20, as reported by RIA Novosti.

Peskov noted that President Vladimir Putin is open to engaging with world leaders, including Trump. He highlighted Trump’s stated willingness to resolve difficulties through dialogue, which the Kremlin welcomes. However, Peskov clarified, "There are still no specifics, as before."

According to Peskov, no preconditions are necessary for such a meeting—only political will and mutual desire. The Kremlin anticipates that discussions will move forward after the U.S. presidential inauguration.

On Ukraine, Peskov reiterated Russia's consistent and clear position, which Putin has repeatedly outlined. He also criticized the continued provision of Western aid to Ukraine following the recent Ramstein meeting of defense officials.

Russian security forces push towards escalation of the war in Ukraine

Senior Russian security and military officials are advocating for an escalation in hostilities in Ukraine, resisting any moves toward negotiations to end the conflict, according to the Institute for the Study of War (ISW). Analysts note that these officials prioritize intensifying military operations despite limited territorial gains and significant losses in personnel and equipment. Russian forces' daily advances have slowed considerably, with December 2024 seeing an average of nine square kilometers gained per day—far less than in previous months. This trend highlights the growing inefficiency of Russian tactics, raising doubts within the military command about sustaining such high casualty rates for minimal progress.

Despite these challenges, Russian security and military leaders remain unwilling to consider the mounting losses as a reason to halt the war. Instead, they are urging President Vladimir Putin to intensify the war effort, with proposals for partial conscription aimed at bolstering troop numbers and resources. The emphasis on escalation underscores their belief that military operations are more critical than seeking a negotiated resolution, signaling a continued commitment to prolonging the conflict in Ukraine.