The two companies are believed to produce 1 million barrels of oil a day between them (Image: Getty)
Two energy giants are set to be sanctioned by the UK and US as the west piles more pressure on faltering economy.
A recent report produced by the stated that high inflation, high , and a severe labour shortage were all contributing to the country’s economic peril as it continues to fund its .
The dire economic situation, which has seen raised to 21% by the , is said to be causing anger amongst ’s elites, who are feeling the squeeze following nearly three years of war.
Now, the US and UK have announced that they are directly targeting energy giants Gazprom Neft and PJSC Surgutneftegas, which produce 1 million barrels of oil a day and are worth more than Jamaica’s GDP. They are attempting to stop the companies from lining war chest’s pockets and facilitating his military activity.
Hopefully, by sanctioning these companies, ’s ability to generate revenues from energy sales will be significantly curtailed, which will be a fresh blow to the Russian president.
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The two companies are estimated to generate £19 billion between them. (Image: Getty)
said: “Oil revenues are the lifeblood of war economy.
“We will not stand by and let oil profits endanger the lives of Ukrainians – nor will we let keep filling its coffers as it continues to threaten our collective security.
“Taking on Russian oil companies will drain ’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.
“That’s why I have made it my personal mission to constrain the Kremlin and those companies propping it up for the good of our democracy and shared security.”
The sanctions put additional pressure on an economy already at breaking point, with the value of the ruble falling and inflation rising across the country.
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Footage circulating online last week showed furious Russian shoppers blasting the rising , demonstrating the bubbling resentment from the general public and Russian elites over the country’s economic state.
In the viral clip, the narrator says: “Oh my God! Shaving foam costs 570 rubles [£4.39] already. What a horror. A couple of months ago, I bought it for only 250 rubles [£1.77].”
He then asks one woman: “Do you believe the prices will go down next year?”
She replies: “No. Have they ever gone down? Next year will be the year of default.”
The UK has recently taken action against the so-called shadow fleet, ships used by the Russians to facilitate the movement of their oil to help fund their military activity.
Last month, announced sanctions on 20 more ships responsible for transporting more than 4 million barrels of Russian oil in 2024, bringing the total number of shadow fleet vessels sanctioned by the UK to 93.