Oil revenues are a crucial source of funding for Russia’s war machine, and have been repeatedly targeted by Western sanctions since the start of full-scale invasion of Ukraine.
Although no concrete decisions have been made on the potential sanctions, sources familiar with the discussions told Bloomberg that a number of avenues are being explored, including sanctions on Russia’s so-called ‘shadow fleet’.
The additional sanctions, targeting Russian oil tankers that carry billions of dollars worth of oil and oil products, may be unveiled in the coming weeks, the sources said.
The new sanctions are expected to be announced ahead of the January presidential inauguration, amid uncertainty over a future Trump administration’s handling of peace negotiations.
While Trump has pledged to get the US “out” of Russia’s war and negotiate a quick peace deal, Ukrainian officials have urged the president-elect to maintain support and adopt a “peace through strength” approach in dealings with Russia.
As the White House prepares for a transition and President Joe Biden’s influence diminishes in the lead-up to the inauguration, the new sanctions are under consideration amid declining oil prices, according to sources cited by Bloomberg.
Following the US presidential election, Biden has continued to implement hardline foreign policy decisions much to the detriment of Russia, including authorizing Ukraine to use US-supplied long-range ATACMS missiles for strikes inside Russia
In late November, the Biden administration imposed harsher sanctions on dozens of Russian banks, including Gazprombank, Russia’s main conduit for energy-related payments — sinking the Russian ruble to levels it has not seen since March 2022, following the full-scale invasion.
The decisions to sanction Gazprombank stirred blowback from some Western allies, namely Hungary and Turkey — with officials fearing that similar strict future sanctions may drive up oil prices.
The latest discussions on additional sanctions comes the Biden administration rushes to deliver the remaining approximately $5 billion in military aid to Ukraine ahead of the inauguration of Trump, amid concerns that a future Trump administration would halt weapons shipments before they reach Kyiv.
Two administration officials told Politico in early November that the White House plans to expedite the weapons delivery ahead of the January inauguration, as Trump has previously stated that he would cease military aid to Ukraine unless it agrees to hold peace negotiations with Russia.
