U.S. President Joe Biden is considering the implementation of new sanctions against Russia's energy sector in the final weeks of his presidency. This was reported by The Washington Post, citing four sources.
The publication referred to the potential sanctions as "Biden's farewell blow to Putin's war chest." The Washington Post discusses the term "war chest," which can be translated as "military budget" or "military reserve."
The new measures may target Russia's so-called shadow fleet — tankers that transport Russian oil in violation of sanctions.
Additionally, the restrictions might extend to Russian oil exporters that were previously exempt from sanctions. There is also consideration of revoking licenses that allow banks to process payments for Russian energy resources.
Implementing these sanctions would provide U.S. President-elect Donald Trump's team with more leverage in negotiations with Vladimir Putin regarding the cessation of the Russian-Ukrainian war.
A senior U.S. official stated that these measures would enable Ukraine to be in the best possible position for self-defense and to negotiate peace on fair terms.
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Bloomberg was the first to report on December 11 that the U.S. is considering sanctions against Russian oil trade. The Biden team is working on restrictions on the export of certain types of Russian oil, as well as sanctions against the shadow fleet involved in oil transportation.
Since the onset of Russia's full-scale invasion of Ukraine in February 2022, the U.S. government has imposed sanctions against Russian banks, defense, industrial enterprises, and other companies. However, the Russian energy sector has only been partially affected.
Since the beginning of the war, the Biden administration has been cautious about seriously impacting the export of Russian energy resources, fearing that it could lead to a spike in oil prices and, consequently, an increase in gasoline prices in the U.S.
Sales of oil and gas account for one-third to one-half of all revenues in the Russian budget, notes The Washington Post. Against this backdrop, G7 countries, including the U.S., have started discussing lowering the price cap on Russian oil, which has been in effect since February 2023, from $60 to $40 per barrel.
The European Union, as part of the 15th sanctions package against Russia announced on December 16, has imposed restrictions on shipping companies linked to Russia's shadow fleet, as well as on 52 tankers from third countries that transported Russian oil.