Biden administration imposes sanctions on Russian oil companies and tanker fleet

The administration of outgoing US President Joe Biden today imposed further sanctions on Russia’s energy sector, which Washington says provides Moscow with its largest source of funding for its aggression against Ukraine. The measures target major Russian oil companies, as well as the so-called shadow fleet of tankers transporting Russian oil. The US Treasury Department announced the sanctions.

Biden has recently stepped up efforts to support Ukraine, seeking to put it in the best possible position after years of defending itself against Russian aggression before Donald Trump returns to the presidency. Trump’s plans for supporting Ukraine are highly unclear, and the president-elect has repeatedly expressed reservations about the level of US assistance to Kyiv so far. The politician, widely regarded as highly unpredictable, will take office on 20 January and has previously promised to end the war between Ukraine and Russia soon after.

In recent weeks, the Biden administration has stepped up the pace of military aid deliveries to Ukraine, and has now introduced a new sanctions package. The measures will target Gazprom Neft and Surgutneftegas. They also cover more than 180 vessels, many of which are part of the shadow fleet of tankers that transport Russian oil around the world, helping Moscow circumvent existing Western sanctions.

The new sanctions will also target dozens of traders, service providers and insurance companies that help Russia earn revenue from energy product sales. They will also apply to energy sector officials.

The Biden administration had so far avoided tougher sanctions on Russian oil exports, fearing they could drive up prices and affect Western economies as well. The fact that China and India, among others, buy Russian oil also posed a risk.

Washington had already banned imports of Russian oil into the US and, together with its partners, introduced a price cap of 60 dollars (1450 Kč) per barrel on Russian oil sales. Last November, it also imposed sanctions on the Russian company Gazprombank, which collects gas payments from European customers of Russian state-owned gas company Gazprom.