According to Reuters, the Biden administration plans to impose sanctions on tankers transporting Russian oil sold above the Western-set price of $60 per barrel. Russia is using a so-called shadow fleet of older ships to circumvent the restrictions. Many of these vessels are less safe and prone to oil spills, maritime experts say.
After Russia’s invasion of Ukraine in February 2022, the United States imposed sanctions on dozens of such ships from a fleet estimated to number in the hundreds to reduce its ability to finance the invasion.
“This will be a big package,” one of the sources said. Another source reported that the sanctions are likely to also include measures against individuals involved in some networks that trade oil at prices exceeding the cap.
The Biden administration is trying to bolster support for Ukraine before President-elect Donald Trump takes office on January 20, given the frequent complaints from the Republican leader about the cost of U.S. support for Ukraine.
It is unclear what Trump’s approach to sanctions against Russia will be.
Last month, U.S. Treasury Secretary Janet Yellen told Reuters that the U.S. is considering further sanctions on tankers and does not rule out imposing sanctions on Chinese banks as they seek to reduce Russia’s oil revenue and limit its access to foreign supplies to support the war in Ukraine.
Recently, Bloomberg reported that the G7 countries are discussing a possible reduction of the so-called price cap on Russian oil transported by sea to limit Russia’s oil revenues.
Let us also remind you that the EU adopted the 15th sanctions package against Russia on December 16, aimed at countering the circumvention of sanctions by targeting the Russian “shadow fleet” and weakening the Russian military-industrial complex.
