The Biden administration is reportedly weighing a new wave of sanctions targeting Russia’s oil trade,
Unnamed sources familiar with the discussions told Bloomberg that the administration is exploring restrictions on Russian oil exports, a measure Biden previously resisted due to concerns about rising energy prices, especially ahead of last month’s US presidential election.
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However, with global oil prices slipping amid a supply glut, the administration appears more open to aggressive action.
“One model for broader US sanctions could be to impose restrictions similar to those on Iranian oil. In that case, buyers of the oil face US punishment,” Bloomberg reported.
Bloomberg reported that the measures would target Russia’s “shadow fleet” of tankers used to transport its oil. New restrictions could be announced in the coming weeks, aligning with similar European Union plans to impose sanctions on the shadow fleet by year’s end.
However, sanctioning Russia’s oil exports could create economic risks, particularly for relations with countries like China and India, which remain significant consumers of Russian crude. Bloomberg highlighted concerns that such sanctions could spike global oil prices, inflaming tensions with both allies and adversaries.
The proposed measures underscore the administration’s attempt to bolster Ukraine’s position against Russia before President-elect Donald Trump assumes office.
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Trump has advocated for negotiations to end the war in Ukraine, and current officials are focused on bolstering President Volodymyr Zelensky’s position with as much leverage as possible before any talks begin, the report reads.
Putting pressure on Russian leader Vladimir Putin’s finances could provide Ukraine with a stronger negotiating position. However, there is a possibility that Trump might roll back the measures if they lead to a surge in oil prices. However, this move carries with it the political risk of appearing weak or prematurely conceding to Russia.
So far, Biden’s approach to restricting Russian oil has primarily involved capping the price of crude, balancing the need to stabilize global markets while limiting Russia’s revenue from oil sales.
European Union member states were unable to finalize a 15th sanctions package against Russia on Dec. 6, diplomats reported. The proposed measures included extending the Czech Republic’s permission to import Russian oil-based products via Slovakia.
The package stalled as two member states objected to provisions extending the timeline for European companies to divest from Russia, according to diplomats.
EU members plan to revisit the sanctions package in future discussions, as per the Reuters report. The proposed package also includes penalties targeting tankers transporting Russian oil.
