President of the United States of America
Joe Biden
Secretary of the Treasury
Janet Yellen
Special Presidential Envoy for Climate
John Podesta
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC 20500
Subject: A Final Call to Fully Sanction Exports of Russian Fossil Fuels Before January Transition of Power
Dear President Biden, Secretary Yellen, and Mr. Podesta,
The undersigned writes to you to request further sanctions action, led by Razom We Stand, a Ukrainian campaign group dedicated to ending fossil fuel-driven conflicts and climate disruption while spearheading a clean energy transition in Ukraine and globally. As the current U.S. administration approaches the end of its term, we are thankful for your recent sanctions and measures to further limit Russia’s fossil fuel revenue - funding its war against Ukraine and devastating the global climate. However, we urge you to take further decisive action to close critical loopholes in Russian energy sanctions and take bold measures.
Since the beginning of Russia’s full-scale invasion of Ukraine, the war has caused over 1 million casualties and an estimated $500 billion in damages. Meanwhile, Russia has earned over $800 billion from fossil fuels since the full-scale invasion began in February 2022, with a significant portion financing its war machine. The U.S. has the tools to curtail this funding and lead the world in adopting effective sanctions. Real sanctions on Russian fossil fuels could cut 300 million tons of CO2 annually by 2030 and restore just peace in Ukraine.
The Loopholes That Sustain Russia’s War Chest
The U.S. Treasury Department’s general license that exempts payments for Russian oil and natural gas from financial sanctions remains a glaring loophole. While arguably pardonable in early 2022 during energy market instability, it is now long overdue for repeal. Closing this loophole would severely hinder Russia’s ability to generate revenue and support its military campaign in Ukraine.
In December, your administration threatened secondary sanctions on banks and companies that aid Russia’s military-industrial complex. Still, you have so far refrained from threatening or taking secondary sanctions against buyers of Russian oil. The sanctions regime must also expand secondary sanctions targeting entities aiding Russia’s oil trade, including buyers in India, China, and the UAE, as well as shipping companies supplying tankers to Russia’s shadow fleet. This shadow fleet, numbering in the hundreds, not only circumvents the price cap but also poses serious environmental risks as it operates with ageing, unsafe vessels.
The major US sanctions package in August has made significant strides in hindering Russia’s LNG export expansion, particularly by designating seven LNG carriers that Russia’s Novatek attempted to use to boost exports from the Arctic. However, the US has the means to target additional LNG carriers, particularly the Arc7 vessels involved in shipments from the Yamal LNG project and any other ships conducting business with Novatek or Gazprom. These actions are crucial to fully dismantling Russia’s energy empire and ensuring long-term energy security for Ukraine and the world.
The Dual Threat: Climate and Security Risks
Stronger sanctions against the Russian energy sector are not only vital for Ukraine but also for global climate needs. Our recent report found that Russia’s energy sector is responsible for 78% of the country’s greenhouse gas emissions and nearly half of its federal revenue. The report argues that by cutting into Russia’s oil and gas exports, full sanctions could lead to a 25% reduction in Russia’s upstream GHG emissions by 2030 and curb emissions by as much as 300 million tons of CO₂ annually if renewable energy sources replace Russian energy across Europe and Asia.
The Urgent Need for Action
As your administration concludes, you have an opportunity to leave a legacy of unwavering support for Ukraine, decisive climate leadership, and strengthened global security. Full sanctions on Russian oil and gas are not just about cutting off a warlord’s funding—they are a moral imperative to protect lives, stabilize the climate, and end fossil-fueled conflicts.
Key Actions you can take to counter Russia’s energy influences
1. Close remaining loopholes in the sanctions regime: Ban imports of refined oil products produced from Russian crude in third countries, ban provision of any services, technology and software to Russian oil and gas companies.
2. End U.S. business ties with Russian energy: Companies like SLB (Schlumberger) have expanded operations in Russia, supplying $17.5 million in materials as recently as December 2023. This continued engagement undermines sanctions and enables Russia’s war chest to grow.
3. Expand targeted sanctions against shadow fleet vessels: All ships that transport Russian oil without proper maritime P&I insurance and facilitate trade at prices above the price cap should be designated, as should their ship managers, owners, and senior crew members.
4. Expand secondary sanctions: Target buyers of Russian oil, as well as shipping companies selling tankers or providing logistical support to Russia’s shadow fleet.
5. Keep pressure on to derail Russia’s strategic projects in the Arctic: Block international finance, construction contracts, and trade operations for Novatek’s and Rosneft’s “carbon bomb” mega projects in the Arctic, which could emit billions of tons of CO2; block expansion of navigation through the Northern Sea Route with targeted and secondary sanctions.
6. Extend Nord Stream 2 sanctions: A large number of Ukrainian civil society organizations made this call last week.
We urge you to please expedite these measures before the end of the year, in conjunction with US Senate Foreign Relations Committee leadership.
We stand ready to support your efforts and encourage you to implement these vital policies quickly. Please act boldly now to ensure peace, security, and a sustainable future.
We look forward to hearing a reply from you soon to confirm your actions on these matters.
Sincerely,
- Dr. Svitlana Romanko, Razom We Stand, Ukraine
- Mary Gutierrez, Earth Action, United States
- Stephen Loughin, Quaker Action, United States
- Tammy Darcy, The Shona Project, Ireland
- Olena Kravchenko, Environment - People - Law (EPL), Ukraine
- Madina Katter, Grains e.V., Germany
- Karolina Attspodina, WeDoSolar GmbH, Germany
- Carine Kanimba, World Liberty Congress, United States
- Stephanie Brancaforte, Rinascimento Green, Italy
- Nikita Thakrar, Included VC, United Kingdom
- Svitlana Krakovska, Ukrainian Hydrometeorological Institute, Ukraine
- Anastasiia Bondarenko, Austausch e.V., Germany
- Anastasiia Martynenko, Zero Waste Society, Ukraine
- Yuliia Melnyk, Ekoltava, Ukraine
- Liz Robinson, Philadelphia Solar Energy Association, United States
- Diana Popfalushi, Plato, Ukrainian Climate Network, Ukraine
- Olena Vusyk, Center for International Cooperation and Project Implementation, Ukraine
- Roishetta Ozane, Vessel Project of Louisiana, United States
- Andy Gheorghiu Consulting, Germany/International
- Nataliia Haietska, Mariupol Zero Waste, Ukraine
- Martha Camacho Rodriguez, SEE (Social Eco Education), United States
- Ivan Kalosha, Zero Waste Zp, Ukraine
- Steven Vanholme, EKOenergy ecolabel, Finland
- Dr. Kjell Kühne, Leave it in the Ground Initiative, Germany
- Yuriy Stepanets, Association of Ukrainian Civic Initiatives, Ukraine
- Edward Graham Ph.D, ColorBrightonGreen.org, United States
- Nataliia Lytvyn, Energy Transition Coalition, Ukraine
- Nezir Sinani, Business for Ukraine, a global coalition of 90+ organizations
- Olena Halushka, Victoria Voytsitska, International Center for Ukrainian Victory, Ukraine
- Oleksandr Stepanenko, Green World, Ukraine
- Tetiana Khutor, Institute of Legislative Ideas, Ukraine
- Roman Steblivskyi, StateWatch, Ukraine
- Iryna Chernysh, SaveDnipro, Ukraine
- Artem Starosiek, Molfar Ltd, Ukraine