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The United States and Britain have announced major oil sanctions against Russia: List of companies on the "black list"

The US imposed sanctions against the oil sector of the Russian Federation
The United States imposed sanctions against the oil sector of the Russian Federation. Source: Freepik

The United States and the United Kingdom imposed sanctions on the oil sector of the Russian Federation. More than 30 major oil producers and refiners were blacklisted. This is one of the largest "oil" packages of restrictions in recent years. Ukrainian President Volodymyr Zelenskyy has already responded to the sanctions, and global oil prices have risen to their highest since October.

According to the US Treasury Department, the restrictions will take effect on February 27. The sanctions list includes the following companies:

  1. "OFS Technologies" (owner of former Baker Hughes assets in Russia);
  2. "Energy Oil and Gas Service" (former Russian division of Eriell Oilfield Services);
  3. "TNG-Group" (the mineral exploration division of the "Tagras" oilfield services holding);
  4. "LeninogorskRemService" ("Tagras-RS" division for well drilling and hydraulic fracturing);
  5. Oilfield service divisions of the Russian Vertically Integrated Oil Company (VINC);
  6. "RN Drilling" (a drilling subsidiary of "Rosneft");
  7. "RN-GRP" (responsible for increasing the productivity of Rosneft's wells);
  8. "RN Service" (workover of Rosneft's wells);
  9. "Welltech" (51% owned by Yusuf Alekperov, son of Lukoil's founder);
  10. "Gazprom Shelfproekt" (implementation of offshore oil and gas projects);
  11. "Naftogaz-Drilling" (the main production structure of "Naftogaz" Group);
  12. "Petro Welt Technologies" (PeWeTe);
  13. "KATKonafta" (part of the PeWeTe group);
  14. "Investgeoservice" (a major drilling contractor of "NOVATEK");
  15. "TSS" (a manufacturer of well completion equipment);
  16. "Center for Research and Production Works" (part of "Bashneftegeofizyka");
  17. service contractors of "FrakJet Volga" LLC;
  18. "Packer Service";
  19. "Atlas NNB";
  20. "Gulfstream";
  21. "Argos";
  22. "Samotlorneftepromkhim";
  23. "Newtech Well Service";
  24. "Service Prom Komplektatsiya";
  25. "Management for enhanced oil recovery and workover of wells";
  26. "Veteran";
  27. "TechnRise";
  28. "Dencars";
  29. "SPE Drilling";
  30. "Oil Service Guarantor."

The administration of President Joe Biden has banned US companies from providing oil production services in Russia, including exporting or re-exporting oil production services, including their indirect sale, from the US to any person located in Russia.

The medium-tonnage natural gas liquefaction plant on the Baltic coast, "Gazprom LNG "Portovaya," was also subject to the restrictions. The plant at the "Portovaya" compressor station produced 1.385 million tons of liquefied natural gas (LNG) in 2023 and 0.403 million tons in 2022.

The sanctions were also imposed on the Baltic medium-tonnage production facility "Cryogas-Vysotsk" LLC (a joint venture between "NOVATEK" and "Gazprombank"). Sanctions were also imposed on the following oil and gas company executives:

  • Vadim Vorobyov (head of "Lukoil");
  • Alexander Dyukov (Head of "Gazprom Neft");
  • Nail Maganov ("Tatneft");
  • Sergey Kudryashov ("Zarubezhneft");
  • Vladimir Chernov ("Bashneft");
  • Yusuf Alekperov (son of Lukoil's largest shareholder Vagit Alekperov).

The United Kingdom joined the US sanctions. The press service of the UK government announced sanctions against Russian companies "Gazprom Neft" and "Surgutneftegaz."

"These energy companies produce more than 1 million barrels of oil per day worth about $23 billion a year at current prices, which is more than Jamaica's GDP.

According to Reuters, oil prices rose by more than 4% on the eve of the sanctions. Due to possible supply disruptions, benchmark crude futures have reached their highest level since October:

  • Brent rose by $3.50 (+4.6%) to $80.42;
  • WTI rose by $3.57 (+4.8%) to $77.49.

At the same time, President of Ukraine Volodymyr Zelenskyy thanked the United States for its decisive actions against the aggressor country. "These measures significantly undermine the financial basis of the Russian military machine, as they disrupt the supply chain: key Russian manufacturers, insurance companies, oil and gas service providers, 184 shadow fleet tankers, logistics facilities, and third-country companies," Zelenskyy said.

He clarified that sanctions against "Surgutneftegaz" are of particular importance. The President called the company"a key financial purse for Putin himself."

"Energy resources should not be a weapon, as Russia does. Instead, countries that respect international law can and should ensure stable and reliable energy supplies for the whole world," the president summarized.

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