The U.S. Office of Foreign Assets Control (OFAC) has reported that the sanctions imposed on October 22 have already led to a decrease in the Russian Federation’s revenues from oil exports. According to preliminary analysis, these restrictions have contributed to a decline in the value of Russian oil, negatively impacting Russia’s ability to finance military actions against Ukraine.
This is reported by Finway
Decline in Exports and Oil Prices
According to OFAC, key grades of Russian oil are currently being sold at the lowest prices in recent years. About ten of the largest oil buyers from India and China have already announced plans to suspend purchases with deliveries in December. Additionally, experts note that maritime imports of crude oil from Russia to China in November may decrease by 500,000–800,000 barrels per day, which is about 65% of the normal level. The surplus of ESPO grade oil has deepened the discount on Russian oil for China to $4 per barrel, whereas at the end of October, this figure was only $0.5.
Reorientation of Asian Markets and New Agreements
State-owned oil refining companies in India have signed their first long-term agreement with the U.S. for the import of 2.2 million tons of liquefied natural gas next year. This comes amid New Delhi’s negotiations for a trade agreement with the U.S. aimed at reducing tariffs imposed in response to oil imports from Russia.
“The bill allows the president to impose secondary sanctions and tariffs at his discretion against countries that continue to buy cheap Russian oil and gas, thereby supporting Putin’s war machine,” he noted.
The U.S. Department of the Treasury emphasized that the existing sanctions are already depriving the Russian military machine of a significant portion of its funding, and the department is prepared to take additional measures to stop war crimes in Ukraine.
U.S. Senator Lindsey Graham reported that with President Donald Trump’s support, Congress is considering a bipartisan bill to strengthen sanctions against Russia. The document provides for expanding the powers of the U.S. president to impose secondary sanctions and tariffs on countries that continue to support Russian energy supplies. This will also give the American leader more opportunities to influence not only Russia but also, in particular, Iran, which supports the Putin regime.