The first weeks of 2025 were productive for sanctions initiatives in the West and in Kyiv. Despite these restrictions having real consequences for CRINK countries, Moscow is still finding ways to acquire advanced technologies that circumvent global restrictions. We detail this in Sanctions Digest #4.
US Sanctions Ahead of Trump's Inauguration
On January 15, the US State Department and Treasury Department imposed sanctions on more than 250 entities. The new restrictions are aimed at countering the circumvention of US sanctions and the Russian military-industrial complex.
“Today's actions frustrate the Kremlin's ability to circumvent our sanctions and get access to the goods they need to build weapons for their war of choice in Ukraine,” said Deputy Secretary of the Treasury Wally Adeyemo.
The Treasury Department also imposed new restrictions on nearly 100 entities that were already under U.S. sanctions. The new measures will make it difficult to lift the existing restrictions, as this would require congressional approval.
Energy Sanctions by the US and the UK
The United States introduced the largest sanctions targeting Russia’s energy sector, aimed at limiting the Kremlin’s primary revenue source that funds its military actions against Ukraine.
The restrictions affected 183 vessels, mostly oil tankers, many of which belong to Russia’s so-called "shadow fleet." Large Russian oil companies such as Gazprom Neft and Surgutneftegas also came under sanctions. The restrictions extended to financial systems that Russia uses to move funds related to oil trade.
Simultaneously, the UK imposed similar restrictions. It was noted that these measures would not impact the energy security of the Kingdom, which has already almost entirely abandoned Russian energy imports.
Russian Oil Tankers Stuck at Sea Due to US and UK Sanctions
Following the implementation of new restrictions on Russia’s energy sector, at least 65 Russian oil tankers are drifting at sea. According to Reuters' analysis, based on MarineTraffic and LSEG data, five tankers are docked near Chinese ports, seven are anchored near Singapore, while others remain near Russia
India, on the other hand, seeks to completely avoid tankers under US sanctions, Bloomberg reports, citing a senior Indian official. Sanctioned vessels will not be allowed to unload at Indian ports.
10 EU Countries Call for a Ban on Russian Pipeline Gas and LNG
EU members are also advocating stricter measures against the Kremlin’s energy resources. Ten EU countries, including Sweden, Ireland, Poland, and the Baltic States, appealed to the European Commission to implement a complete ban on the import of Russian natural gas, including liquefied natural gas (LNG). They aim to limit Russia’s revenue amid high gas prices.
The Taliban Seeks an Agreement with Russia on Gas Transit
The Taliban representatives announced their intent to secure an agreement with Russia on natural gas transit. Afghanistan plans to transport up to 50 million cubic meters of LNG annually through its territory.
The Taliban considers this agreement crucial for strengthening Afghanistan’s role in regional trade, although logistical and geopolitical challenges remain significant obstacles to its implementation.
Thus, the Taliban, once recognized as a terrorist organization in Russia, could soon become the Kremlin’s sole buyer of energy resources, given Western sanctions.
Russia Imports Unique Laser Equipment from the US and EU Despite Sanctions
Highly precise lasers developed by Western companies continue to reach Russia, particularly through European firms and EU citizens, The Insider reports.
For instance, the T-430 alignment lasers from the German company Status Pro Maschinenmesstechnik GmbH, used for calibrating metal-cutting machines with extreme precision, may have military applications in Russia. Vision lasers from the German company Z-Laser are essential for machining, quality control, defect detection, and product sorting. Programmable optical processors, such as the II-VI WaveShaper manufactured by the US company Coherent, are used in 5G and 6G technologies, artificial intelligence, and defense systems, with the capability of processing signals at frequencies of up to 1 terahertz.
Ukraine Introduces a New Sanctions Package Against Russia
Ukrainian President Volodymyr Zelenskyy has signed a decree enacting the National Security and Defense Council's decision to implement a new package of sanctions targeting Russia's financial sector.
The measures apply to over 300 individuals and organizations involved in the war against Ukraine or supporting Russian aggression. The sanctions include asset freezes, bans on financial transactions, and denial of entry to Ukraine.
Additionally, the President submitted Bill No. 12406 to parliament, which introduces criminal liability for attempts to circumvent sanctions. The document has been received by the Verkhovna Rada and forwarded for review.
Tencent and Tesla Battery Supplier — Chinese Military Companies
The Biden administration added Tencent Holdings Ltd., the world’s largest game publisher and owner of WeChat, and Contemporary Amperex Technology Co. Ltd., Tesla’s key battery supplier, to the list of "Chinese military companies." The US claims these companies directly or indirectly collaborate with the Chinese military or significantly contribute to the country’s industrial base.
Although the list does not impose specific sanctions, it delivers a reputational blow and encourages American companies to avoid cooperation with its members.
Will this wave of restrictions set a dynamic pace for sanctions policy in 2025, or will it be a temporary flurry before the Trump administration takes over? We'll find out in the next ESCU Sanctions Digests.