Energy sanctions against Russia: the pressure is increasing, the effect is there. DiXi Group evaluated how effective these measures were in the first quarter of 2024
A significant part of the shadow fleet, which the terrorist state uses to sell its oil, violating the price cap, was stopped by new secondary sanctions.
The restrictive measures had a significant impact on the export of Russian oil to India. India completely refused to buy the oil transported by the sanctioned hashtag Sovcomflot tankers and was unable to purchase Sokol oil, which China instead has bought
In addition to logistical problems, the Russians also have financial troubles: during the first quarter of 2024, it was difficult for them to receive money for the sold oil, because due to the threat of American secondary sanctions, banks in the PRC, the UAE and Turkey increased the requirements for the corresponding payments.
Thanks to the ban on supplying foreign equipment, hashtag Lukoil halved the production of high-octane gasoline at the Nizhny Novgorod Refinery.
Meanwhile, the Arctic LNG 2 project has critical problems with ice-class tankers, as instead of the planned 21, it got only three because Korean and Japanese companies refused to build them.
The export of liquefied petroleum gas is also experiencing difficulties. They are caused by the Swiss ban on purchasing and importing Russian LPG, drone attacks on the port of Ust-Luga, lack of tankers for export at the hashtag#Sibur company
The United States has strengthened sanctions against subsidiaries of hashtag Rosatom. At the same time, the restrictive measures were introduced against the largest Russian geological exploration holding hashtag#RosGeo. This will make it difficult to drill new oil wells for Russia.
Our think tank continues its quarterly monitoring and analysis of key developments regarding energy sanctions against Russia. Our goal is to track the effectiveness of the impact of such measures on the economy of the aggressor state as a whole and the impact on energy security in Ukraine and the world.
More interesting details about the sanctions measures and how they affect the Russian energy sector can be found in our research.
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The post was prepared with the support of International Renaissance Foundation within the project “Improving energy security of tomorrow”.
The material reflects the position of its authors and not necessarily the position of the International Renaissance Foundation.
