U.S. Steps Up Russia – BBC”>Ukraine Support Ahead of Biden Exit, As Russia Skirts Oil Limits
WASHINGTON, DC – The Biden administration is racing to bolster support for Ukraine before leaving office on January 20, mindful of incoming President Donald Trump‘s frequent remarks about the cost of U.S. backing for the country. The path forward for Trump’s stance on Russia sanctions remains uncertain.
Sources reveal that the Biden administration is planning a package of sanctions against tankers transporting Russian oil sold above the Western-imposed limit of $60 per barrel. Russia has been using a so-called shadow fleet of aging vessels to circumvent this cap, many of which are considered less safe and prone to oil spills, according to maritime experts.
Following Russia’s February 2022 invasion of Ukraine, the U.S. sanctioned dozens of these vessels to curb Moscow’s ability to fund the incursion. Russia has since redirects its oil sales to China and India, which have purchased Russian crude at discounted prices, even when above the set ceiling.
"This will be a significant package," said one source. Another source indicated that sanctions will likely target individuals involved in certain oil trading networks operating above the pricing threshold.
U.S. Treasury Secretary Janet Yellen told Reuters last month that the U.S. is considering additional sanctions against tankers and is not ruling out targeting Chinese banks, aiming to diminish Russia’s oil revenues and limit its access to foreign supplies for its war against Ukraine.
Late last year, the "Group of Seven" nations, the EU, and Australia implemented a $60 per barrel price cap on Russian oil, prohibiting the use of Western maritime services, such as transport, insurance, and financing, for shipments sold at or above the set limit.
