US Imposes Aggressive Sanctions on Russian Oil

Recent U.S. sanctions targeting Russian oil and gas producers, notably Gazprom Neft and Surgutneftegas, may significantly disrupt India's access to discounted Russian crude oil, forcing it to revert to market prices. Analysts predict that the sanctions will prompt both Chinese and Indian refiners to seek alternative oil supplies from the Middle East, Africa, and the Americas, potentially increasing global oil prices and freight costs. The sanctions are part of broader efforts by the U.S. to curtail revenues for Moscow amid ongoing conflict in Ukraine and come as part of the Biden administration's final actions. With these sanctions, over 180 vessels involved in Russian oil transport are also affected, including a fleet that previously facilitated significant crude exports to India and China. The repercussions of these measures extend to the global oil market, with prices already exceeding $80 a barrel, marking a high since October. The situation represents a concerted effort to leverage sanctions against Russia's energy sector while impacting international supply chains.