Biden administration may tighten sanctions against Russian oil exports – Bloomberg

The Biden administration has been considering new, stricter sanctions on Russian oil trade.

Source: Bloomberg with reference to its sources

Details: Bloomberg noted that the Biden administration may impose stricter sanctions on Russia's lucrative oil trade in an effort to increase pressure on the Kremlin’s military machine just weeks before Donald Trump returns to the White House.

Bloomberg specified that the details of potential new sanctions are still being worked out, but Biden’s team is considering restrictions that could impact certain types of Russian oil exports.

Quote from Bloomberg: "Biden had long resisted over fears it could trigger a spike in energy costs, especially in the run-up to last month’s presidential election.

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, the people said."

Details: Bloomberg stated that these discussions highlight the Biden administration’s increased willingness to take risks in its confrontation with Russia as it prepares to leave office. This shift comes particularly after previous efforts to limit the Kremlin’s energy revenues produced mixed results, while average gasoline prices in the US have reached their lowest levels since mid-2021.

In the final weeks of holding office, the administration also decided to increase military and financial support for Ukraine amid doubts about Trump’s commitment to continued US assistance.

According to sources of Bloomberg, the administration is also considering new sanctions targeting the fleet of tankers Russia uses to transport its oil. 

Restrictions on this so-called shadow fleet may be announced in the coming weeks.

Bloomberg also added that the European Union is planning similar measures against Russia’s shadow fleet by the end of 2024. The sanctions package is also expected to target individuals involved in the trade of Russian oil.

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