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U.S. Sanctions on Russian Energy Sector: A Step Towards Curbing Malign Influence and Kleptocracy

As an international NGO dedicated to promoting transparency and accountability in global governance, we welcome the U.S. Department of the Treasury’s comprehensive sanctions against Russia’s energy sector, as outlined in their January 10, 2025 press release. These measures, targeting major Russian oil producers Gazprom Neft and Surgutneftegas, along with over 180 vessels and dozens of oil traders, and chief executive officer and members of State Atomic Energy Corporation Rosatom represent a significant step in curbing Russia’s ability to fund its illegal activities and malign influence operations.

We particularly commend the inclusion of Gazprom Neft’s international subsidiaries in the sanctions list. By designating entities such as Gazprom Neft Tadzhikistan, Gazprom Neft International SA, Gazprom Neft Kazakhstan, NIS AD Novi Sad, Gazprom Neft Asia, and Munay Myrza, the U.S. government effectively curtails Russia’s ability to leverage its influence in Central Asia and beyond. This action is crucial in preventing Russia from using these regions to evade accountability, circumvent international sanctions and acquiring assets using corruption and strong-arm tactics, as demonstrated by the acquisition of Kyrgyzgas for a 1 USD or Rosatom’s recent purchase of world’s largest uranium assets in Kazakhstan.

It is imperative to recognize that Gazprom and Rosatom are not merely energy companies but powerful geopolitical instruments wielded by the Kremlin regime. These state-owned entities are integral components of a vast criminal kleptocratic network serving the interests of Russia’s and Central Asian autocratic kleptocracies. As tools of malign influence, they:

  1. Create and perpetuate geopolitical dependencies, particularly in Europe and developing countries.
  2. Serve as conduits for circumventing international sanctions.
  3. Engage in coercive economic tactics to undermine democratic governance and Western alliances.
  4. Enrich elites in target countries to influence government policies favorable to Moscow.
  5. Exploit vulnerabilities in democratic systems to advance the Kremlin’s agenda.

Rosatom, reporting directly to President Putin, plays a crucial role in Russia’s military-industrial complex and has been implicated in activities supporting the war against Ukraine. Similarly, Gazprom has been used as a geopolitical lever, particularly in Europe, to strengthen Russia’s grip on the continent’s energy security.

These expanded sanctions, coupled with the new energy sector determination demonstrate a strong commitment to disrupting the Kremlin’s financial resources. We anticipate that these measures will contribute significantly to holding Russia accountable and impeding its ability to fund its aggressive activities.

We call for the further expansion of sanctions to include Rosatom entities operating in Central Asia. Rosatom’s growing presence in the region, including its involvement in nuclear power projects in Uzbekistan and Kyrgyzstan, as well as its acquisition of uranium assets in Kazakhstan through corrupt schemes, represents a significant geopolitical tool for the Kremlin. By leveraging its nuclear expertise and energy resources, Russia aims to create long-term dependencies and strengthen its influence in Central Asia. Further sanctioning Rosatom’s activities in this region would not only disrupt Russia’s efforts to circumvent existing sanctions but also protect Central Asian nations from potential economic and political exploitation. Such measures would align with broader efforts to curb Russia’s ability to use its energy sector for malign influence and help safeguard the energy independence and sovereignty of Central Asian states.

Feedom for Eurasia calls on the international community to remain vigilant and united in its efforts to counter the Kremlin’s weaponization of state-owned enterprises. We urge continued action to dismantle the system of kleptocracy that extends beyond Russia’s borders into Central Asia and beyond. Only through concerted global efforts can we effectively challenge the operations that blur the lines between legitimate business activities and tools of state-sponsored malign influence, thereby safeguarding international security and democratic institutions.

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