BREAKING: New OFAC Sanctions on Russian Oil Sales to EU

The US Treasury Office of Foreign Assets Control (OFAC) has just levied new sanctions on Russian energy sales.  I haven’t reviewed the sanctions thoroughly yet but they seem to be very tough, surprisingly so, and they seem to apply to third party transactions.  At first glance that seems designed to force the EU to choose between doing business in the US or using Russian energy.  But the EU cannot afford to lose the largest export market in the world so it’s not much of a choice.  As many may be aware, the EU is funding both sides of the war.  The EU does this by on the one hand sending billions to Russia to purchase energy while at the same time supporting the Ukraine with cash and weapons.   This may change after I read more carefully but that’s how it seems now.

Interesting and surprising.   We’ll see how it pans out.