Official announcements from the Biden administration or U.S. Department of Treasury

Biden Considers Sanctions on Russian Energy Sector's Shadow Fleet and Oil Exporters for Ukraine Leverage

Dec 24, 2024, 02:58 PM

The Biden administration is contemplating imposing major new financial sanctions on Russia's energy sector in the final weeks of President Joe Biden's term, according to reports from The Washington Post. These potential sanctions are aimed at targeting Russia's 'shadow fleet' of oil tankers and Russian oil exporters not previously sanctioned. The move is seen as a strategic effort to provide the incoming Trump administration with increased leverage in negotiations with Russia concerning the ongoing conflict in Ukraine. The sanctions could also include revoking licenses that allow banks to process transactions related to the Russian energy sector. However, the administration is cautious about the potential impact on global energy prices and the U.S. economy, as Biden aims to leave office with a stable economic environment. The proposed sanctions are intended to significantly reduce Russia's export revenue, with the goal of achieving a double-digit decline over six to twelve months, as suggested by Peter Harrell, a former senior director for international economics in the Biden administration.