Biden administration plans news sanctions against Russian oil tankers – Reuters

The Biden administration intends to place sanctions on tankers carrying Russian oil priced at over $60 per barrel. These actions will also impact individuals involved in trading oil above the designated price limit.

Reuters reports this.

As noted, the Biden administration seeks to strengthen support for Ukraine before the inauguration of US President-elect Donald Trump on January 20, "given the Republican leader's frequent complaints about the cost of US support for Ukraine."

It's unclear what Trump's stance will be on imposing sanctions against the Russian Federation.

"The Biden administration plans to impose sanctions on tankers transporting Russian oil sold above the Western price ceiling of $60 per barrel," the sources said.

Russia has been using this so-called "shadow fleet" of aging vessels to evade restrictions. Shipping experts say many of these vessels are less safe and prone to oil spills.

After Russia invaded Ukraine in February 2022, the United States imposed sanctions on dozens of such ships from a fleet estimated to number in the hundreds to reduce Russia's ability to finance the invasion.

The restrictions reportedly forced Russia to redirect its oil sales to China and India, which were willing to buy Russian crude, usually sold at a discount to the general market, even if it is sold at a price above the ceiling.

"It will be a large package," one of the sources said.

Another source said the sanctions would likely include measures against people involved in networks that trade oil at a price above the ceiling.

US Treasury Secretary Janet Yellen told Reuters last month that the US was considering additional sanctions on tankers and had not ruled out sanctions on Chinese banks as it seeks to cut off Russia's oil revenues and access to foreign supplies to fuel its war in Ukraine.

The G7, EU, and Australia have imposed a $60 price ceiling on Russian oil at the end of 2022, banning the use of Western maritime services such as transport, insurance, and financing to supply oil at or above the ceiling. Russia is one of the world's three largest oil producers.

On December 16, the EU adopted the 15th package of sanctions against Russia, designed to counter the circumvention of sanctions by targeting the Russian "shadow fleet" and weaken the Russian military-industrial complex.

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As early as December 2022, Russia began creating a "shadow fleet" of old tankers to export oil to circumvent the sanctions imposed on it due to the war against Ukraine.

As Rubryka wrote earlier, the United States imposed sanctions against the organizers of the transportation of Russian oil sold above the ceiling of $60 per barrel. Thus, all their property in the United States was blocked, and all transactions related to them, carried out both by individuals in the United States in particular and within the country in general, were prohibited.

Moreover, the European Union planned to instruct Denmark to inspect and potentially block tankers carrying Russian oil passing through its waters amid attempts by Western countries to impose a "price ceiling" on it, which the Russian Federation has learned to avoid.

It is worth adding that Russian vessels belonging to the so-called "shadow fleet" have been the source of at least nine oil spills in different parts of the world since 2021.