Biden's Strategic Move: New Sanctions Target Russian Oil Revenue

The Biden administration plans to impose new sanctions on Russia, focusing on tankers carrying Russian crude to cut oil revenue fueling its Ukraine war. China's and India's purchases of Russian oil have circumvented a price cap. Measures may extend to global networks facilitating these trades.

In a strategic move to curb Russia's oil revenue funneling its war efforts in Ukraine, the Biden administration is set to introduce new sanctions aimed at tankers transporting Russian crude. According to sources, the sanctions will target vessels violating the $60 per barrel oil price cap imposed by Western nations.

The U.S. has sanctioned numerous ships in Russia's shadow fleet, notorious for its unsafe conditions and oil spillage risks. These efforts are part of a broader strategy to limit Russia's financial capacity to continue its military campaign in Ukraine. With Russia redirecting oil sales to countries like China and India, new measures are anticipated to counteract these transactions.

U.S. Treasury Secretary Janet Yellen recently indicated that additional sanctions may target Chinese banks and other entities involved in shadow fleet operations, which have been essential in circumventing the price cap. The coalition of G7, EU, and Australia remains committed to enforcing the cap and reducing Russia's global oil revenue.

(With inputs from agencies.)