US intends to tighten sanctions against Russian oil
Sanctions against Russian oil will be tougher (Getty Images)
The United States intends to tighten restrictions on the trade of Russian oil, specifically targeting the shadow fleet used by Moscow to transport crude, according to US Deputy National Security Advisor Daleep Singh.
" think we are getting closer to being able to talk about a much stricter regime in relation to both the shadow fleet and the volumes of oil that Russia can supply to the market.," he said.
Singh also mentioned another area of sanctions policy where the US plans to ramp up efforts: reducing the "interest of third countries that produce components that end up directly on the battlefield in the interests of Russia, or the transit delivery of goods."
Price cap and shadow fleet
Since December 2022, the European Union has imposed an embargo on the import of seaborne oil from Russia. In addition, the G7 countries and Australia introduced a price cap of $60 per barrel for Russian oil.
However, Russian companies secured insurance coverage for 60% of oil shipments from Moscow to India. This allows Russia to sell oil at prices above $60 per barrel, surpassing the limits set by the G7 countries, the European Union, and Australia.
At the same time, Western companies provided insurance for the remaining 40% of tankers delivering oil to India in July. However, these were only granted for Russian shipments sold at or below the established price limit.
For more details on Russia's illegal oil trade, read RBC-Ukraine's article "Shadow fleet: How Russia circumvents western oil sanctions and Ukraine's struggle against this challenge."
