US weighs new Russia oil sanctions to weaken Putin ahead of Trump - Bloomberg
Photo: The US will strengthen sanctions against Russia's shadow fleet of tankers (Getty Images)
The Biden administration is developing new, tougher sanctions targeting Russia's lucrative oil trade. The move aims to increase pressure on the Kremlin’s military industry ahead of Donald Trump's potential return to the White House, reports Bloomberg.
Details of the likely new measures are still being worked out. However, according to sources, Biden’s team is considering restrictions that could affect certain types of Russian oil exports.
The agency notes that President Biden has long resisted such a decision due to concerns it might trigger a spike in energy prices, particularly ahead of the presidential elections in November.
"But with prices for oil slipping amid a global glut and fears growing that Trump may seek to force Ukraine into a quick deal with Russia to end its nearly three-year-old war, the Biden administration is now open to more aggressive action," Bloomberg’s sources said.
According to the agency, discussions indicate a greater willingness within Biden’s team to take risks in confronting Russia as the end of its current term approaches. This readiness is partly due to the mixed results of previous attempts to limit Russia’s energy revenue. Additionally, US gasoline prices have fallen to their lowest level since mid-2021.
In the final weeks of its term, the administration also decided to increase military and financial support to Ukraine amid doubts about continued US backing under the Trump administration.
According to Bloomberg sources, the Biden administration is also considering imposing new sanctions on the tanker fleet Russia uses to transport its oil. New restrictions targeting the so-called shadow fleet could be announced soon.
The agency also adds that the European Union plans to introduce similar restrictions on Russia’s shadow fleet by the end of the year. The EU sanctions are expected to target individuals involved in the trade of Russian oil.
Russia’s oil shadow fleet
In October 2023, the United States first imposed sanctions on two Russian tankers, Primorye and Yasa Golden Bosphorus. These vessels were transporting oil sold above the price cap of $60 per barrel. The price cap was introduced to limit Russia’s revenue from oil trade.
In the summer, the sanctions list expanded to include 73 more Russian ships.
In June, the United Kingdom added 50 new entries to the sanctions list, covering six ships from the so-called shadow fleet.
In July, London imposed 11 additional sanctions on maritime vessels as part of its sanctions regime.
For more about Russia's creation of a shadow fleet and why sanctions failed to stop oil tankers, see our author's article.
