United States Expands Sanctions Targeting Russia's Energy Sector

OFAC and the U.S. State Department significantly broadened sanctions targeting Russia's energy sector by imposing blocking sanctions on two major oil producers and hundreds of other individuals, entities, and vessels, revoking a long-standing general license authorizing energy-related transactions involving sanctioned Russian banks, and issuing a new determination that will prohibit U.S. persons from providing "petroleum services" to persons in Russia.

On January 10, 2025, the U.S. Treasury Department, Office of Foreign Assets Control (OFAC) and the U.S. Department of State announced significant new sanctions targeting Russia's energy sector.1 The sanctions include:

• Blocking sanctions targeting two major Russian oil producers. OFAC designated two of Russia's largest oil producers, Gazprom Neft and Surgutneftegas, as well as dozens of their subsidiaries, pursuant to Executive Orders (E.O.s) 14024 and 13662 for operating in the Russian energy sector.2 As a