The United States Treasury announced sanctions targeting 17 Russian businessmen and members of the government, extending to Maria Zakharova, the spokesperson for the Russian Foreign Ministry. The move adds new constraints against individuals and entities, signaling a broad effort to curb Moscow’s economic and diplomatic reach. Zakharova described the actions as merely another performance by American officials, while acknowledging ongoing visa difficulties that complicate travel for Russian officials. The sanctions also accompany measures against 16 entities and a range of assets, including yachts, helicopters, planes, and business jets, underscoring the breadth of the crackdown.
Concurrently, representatives from EU member states endorsed the sixth package of sanctions, extending restrictions to sectors including oil, banking, and media. As part of the package, sea-based supplies of Russian energy are prohibited, a move Bloomberg notes took effect six months after the initial sanctions were enacted. European policymakers hope that, combined with existing measures in Poland and Germany, this package could reduce purchases of Russian energy by about 92 percent by year-end. There are even discussions about banning oil deliveries to Europe via pipelines. The EU also forbids services to Russian oil companies, with new restrictions slated to take effect once the document is published in the EU Official Journal, anticipated on June 3 at the earliest.
Russian Deputy Prime Minister Alexander Novak warned that the oil embargo could trigger a shortage of petroleum products within the EU, though the bloc argues that market readjustment time will be afforded as the energy-supply ban is phased in. The Russian Foreign Ministry contends that the sixth package has already dealt a heavy blow to the EU, highlighting that partial oil extraction restrictions and the prohibition on Russian merchant ship insurance could drive up prices, disrupt supply chains, and destabilize energy markets. Officials argue such actions threaten not only the oil sector but agriculture as well, suggesting a broader economic impact that could complicate global food security efforts that Brussels has publicly sought to avert.
Slovnaft, the Slovak state-controlled refinery, has issued a statement noting that the new sanctions render it difficult to supply petroleum products to Central European markets. Lithuania has offered a more extended timeline for the anticipated effects, with Finance Minister Gintarė Skaistė stressing that sanctions will not yield immediate results and that the Russian economy will feel the impact in the coming years. She emphasized the importance of pursuing a targeted approach that reduces reliance on Russian energy production for the long term. In Washington, President Joe Biden signaled willingness to consider options to curb Russian oil purchases, including discounted pricing. The White House asserted that Russia would likely have to sell oil at prices lower than those currently prevailing on the market. Moscow, however, has indicated it will not sacrifice profits, with Dmitry Peskov, the presidential press secretary, asserting that Russia will not sell itself at a loss and pointing to logistics problems that complicate the global oil market. He cautioned that while sanctions create artificial friction, market dynamics remain the primary force at work, with currents and conditions steering outcomes. In a related development, Alexander Novak announced an uptick in Russian oil production early on June 2, explaining that the balance point is shifting as sanctions interact with evolving logistics chains and rising freight costs. He spoke to a Russian state television outlet about these adjustments, framing them as part of a broader effort to stabilize the market under challenging conditions.