US plans to tighten sanctions against tankers transporting Russian oil - Reuters
Kyiv • UNN
The Biden administration plans to impose sanctions on tankers transporting Russian oil at more than $60 per barrel. The measures will also affect those involved in oil trading above the price ceiling.
The administration of US President Joe Biden plans to impose additional sanctions on Russia over its war with Ukraine, targeting its oil revenues by taking action against tankers carrying Russian oil, Reuters reported on Sunday, citing two sources with knowledge of the matter, UNN reported.
Details
The Biden administration is reportedly seeking to strengthen support for Ukraine before US President-elect Donald Trump takes office on January 20 "given the Republican leader's frequent complaints about the cost of US support for Ukraine.
It is unclear what Trump's approach to sanctions against Russia will be.
The sources said that "the Biden administration plans to impose sanctions on tankers carrying Russian oil sold above the $60 per barrel price ceiling set by the West." Russia has been using this so-called "shadow fleet" of aging vessels to avoid the restriction. Many of the vessels are less safe and prone to oil spills, shipping experts say.
After Russia's invasion of Ukraine in February 2022, the United States, to reduce Russia's ability to finance the invasion, imposed sanctions on dozens of such vessels from a fleet estimated to number in the hundreds.
The restriction, as indicated, forced Russia to redirect its oil sales to China and India, which were willing to buy Russian crude oil, which is usually sold at a discount compared to the general market, even if it is sold at a price higher than the ceiling.
"It will be a big package," one source said. Another source said that the sanctions are likely to also include measures against people involved in some of the networks that trade oil at a price above the ceiling.
U.S. Treasury Secretary Janet Yellen told Reuters last month that the U.S. is considering additional sanctions on tankers and has not ruled out sanctions on Chinese banks as it seeks to cut Russia's oil revenues and access to foreign supplies to fuel its war in Ukraine.
Addendum
The G7, EU, and Australia imposed a $60 price ceiling on Russian oil at the end of 2022, banning the use of Western maritime services such as transportation, insurance, and financing to supply oil at a price equal to or above the ceiling.
Russia is one of the three largest oil producing countries in the world.
