The restrictions could target some crude exports and Russia’s tanker fleet, the outlet has said
US President Joe Biden’s administration is preparing harsher sanctions against Russian oil just weeks before Donald Trump returns to the White House, Bloomberg has reported.
The details of the new restrictions are yet to be finalized, but Washington is looking to target some Russian oil exports, the outlet said on Wednesday, citing people familiar with the matter.
While the US has already banned imports of Russian oil, Biden had long been reluctant to take a more aggressive action against the country’s crude due to fear of energy costs skyrocketing, especially during the run-up to the presidential election, the report said. However, with oil prices falling amid an expected surplus next year and uncertainty about Donald Trump’s commitment to further support for Kiev, the White House could resort to harsher measures, the outlet noted.
The call for new sanctions underscores the departing administration’s willingness to confront Russia before the end of Biden’s term, especially since despite attempts to cripple the Russian economy, Moscow’s GDP is projected to rise by 3.5% this year.
One of the methods that the US could reportedly use to sanction Russian oil exports is to target potential buyers. In this model, purchasers would face punishment by the US. However, such a move would carry significant risks, as major powers such as India and China are Russia’s top customers, the outlet warned, and such limits could also trigger a spike in global oil prices.
The sanctions will also be aimed at Russia’s oil tanker fleet, often described in the West as a ‘Shadow Fleet’, and could be unveiled in the coming weeks, the source told the outlet.
Western governments have introduced a price cap, along with an embargo on Russian seaborne oil, in an attempt to hurt the country’s economy, while at the same time keeping Russian crude flowing to global markets so as not to trigger price hikes.
The Ukraine conflict-related measures were imposed in December 2022, and were followed in February 2023 by similar restrictions on exports of Russian petroleum products. They ban Western companies from providing insurance and other services for shipments of Russian crude, unless the cargo is purchased at or below $60 per barrel.
In response, Moscow banned Russian enterprises from complying with the cap and rerouted most of its energy exports to Asia, particularly India and China.
