Bloomberg: Biden weighs new and tougher sanctions on Russian oil trade

US President Joe Biden’s administration is considering imposing new and tougher sanctions on Russian oil trade in order to limit Moscow’s ability to finance the war in Ukraine. Bloomberg reported the news today, citing sources familiar with the matter. Biden leaves office next month.

With Donald Trump’s return to the White House approaching, the Biden administration is stepping up efforts to support Ukraine in its fight against Russia’s military invasion. Some Russian oil exports could be targeted by the new sanctions, according to sources, although the details are still being worked out.

The Biden administration has so far avoided tougher sanctions on Russian oil exports out of concern that they could lead to a sharp rise in crude prices, Bloomberg writes. Sources said, however, that the administration is now ready to take more decisive action because oil prices on global markets are under pressure amid a weak demand outlook. There are also growing concerns that Trump will pressure Ukraine to reach a swift deal to end the war with Russia.

Washington has already banned imports of Russian oil into the US, but the new sanctions could target foreign buyers of Russian oil. This could entail risks, as some influential countries, including China and India, also buy Russian oil, Bloomberg notes.

The Biden administration is also considering sanctions against the tanker fleet Russia uses to export oil, according to sources. The European Union is also planning to impose similar sanctions this year. Individuals involved in the Russian oil trade are also expected to be targeted by EU sanctions.

The United States imposed sanctions in November on Russian company Gazprombank, which receives gas payments from European customers of Russia’s state-owned gas company Gazprom. Hungary and other countries that rely on gas imports from Russia subsequently warned that the move posed a potential risk to energy security.