Shares in Russian oil companies plummet in anticipation of new US sanctions, says Moscow Times

Shares in Russian oil companies have fallen sharply on the Moscow Stock Exchange in anticipation of new sanctions from the Biden administration which are expected to include shadow fleet tankers and insurance companies that service the sale of Russian oil.

Source: The Moscow Times

Details: Surgutneftegas shares fell by 2.3%, Gazprom Neft shares by 2.5%, and Rosneft shares by 2%.

In total, the three companies, which account for two-thirds of all oil production in Russia, lost almost 200 billion roubles, or US$1.95 billion, in capitalisation in less than six hours of trading.

Rumours had suggested that Gazprom Neft and Surgutneftegas, Russia's third and fourth largest oil producers, would be included in the new US sanctions package, and this was later confirmed by the US Treasury Department.

The US authorities have increased pressure on the so-called shadow fleet which enables Russia to sell oil above the US$60 per barrel price cap.

In anticipation of new restrictions on Russian oil, its major buyers of late, India and China, have begun to switch to supplies from the Middle East and Africa.

Background:The US Treasury Department's Office of Foreign Assets Control has imposed sanctions on two of Russia's largest oil companies, Gazprom Neft and Surgutneftegas, as well as maritime insurance providers Ingosstrakh and AlfaStrakhovanie.

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