Biden considers new large-scale sanctions against Russian energy sector – WP
In his closing weeks in office, US President Joe Biden is considering new, large-scale sanctions against Russia's energy sector.
Source: The Washington Post, citing sources.
Details: The sanctions could give the new administration of President-elect Donald Trump more leverage in negotiations with Putin to end Russia's war against Ukraine, the sources said.
The main idea of the sanctions is to target the so-called "shadow fleet" of international ships that transport Russian oil to countries outside the Western bloc, as well as Russian oil exporters that have not previously been subject to sanctions.
According to the sources, other options include canceling the licence allowing banks to process transactions related to the Russian energy sector.
If carried out, these policies have the potential to shape Biden's economic and foreign policy legacy ahead of Trump's inauguration.
A big move against Russia on the eve of his departure from office would strengthen Biden's claim that he has inspired Western allies to respond firmly to Russia's invasion of Ukraine in 2022.
At the same time, Biden wants to pass on a healthy economy to his successor, which might be challenged by an energy shock and a recurrence of price hikes from early in his presidency.
"The goal of a new major sanctions action should be a double-digit decline in their export revenue, over a period of six to 12 months," said Peter Harrell, former senior director for international economics in the Biden administration.
A senior US administration official explained on condition of anonymity that these measures are necessary to provide Ukraine with the "best opportunity" to defend itself and negotiate peace on "fair" terms.
Background: On 21 November, it was reported that the United States imposed sanctions on Gazprombank, one of the few major Russian lenders not yet blacklisted, in an effort to limit the Kremlin's ability to finance its war effort.
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