Current US President Joe Biden is exploring the possibility of imposing strong sanctions against Russia, including on the aggressor country's energy sector.
Points of attention
- Biden is considering imposing strong sanctions on the Russian energy sector, including the 'shadow fleet' and oil exporters.
- Sanctions could significantly impact the Russian budget that heavily relies on energy sales.
- The move is aimed at strengthening Ukraine's position in negotiations and resolving the conflict on fair terms.
- The decision to impose sanctions now is attributed to a shift in circumstances, with concerns about gas prices and inflation being less of a deterrence.
- The implementation of strong sanctions is viewed as a strategic step towards ensuring Ukraine's defense and peace negotiations.
What is known about the likelihood of Biden introducing large-scale sanctions against Russian energy
According to the publication's sources, the sanctions will be directed against Russia's "shadow fleet," which transports Russian oil to circumvent Western sanctions.
The sanctions will also affect Russian oil exporters, which are not currently subject to restrictions.
The possible revocation of licenses for banks that process transactions with Russian energy resources is also being discussed.
Why has Biden only now dared to impose sanctions against the Russian energy market?
According to the interlocutors, such a move will give future President Donald Trump and his team more leverage during future negotiations to resolve the criminal war waged by Russia against Ukraine.
As Edward Fishman, a senior fellow at the Center for Global Energy Policy at Columbia University, notes, the Biden administration has not previously imposed tough sanctions on the Russian energy sector due to concerns about rising gas prices and rising inflation.
But the elections are over and inflation is under control. The reasons for such caution about sanctions are no longer relevant, Fishman explains.
At the same time, a senior White House official, in a comment to the publication's journalists, noted that new strong sanctions are necessary to provide Ukraine with the best possible defense position and to negotiate peace on fair terms.
This action will be another step towards achieving this goal, a White House representative explains.
Energy sales remain one of the main sources of revenue for the Russian budget. According to S&P Global, the Kremlin earned about $100 billion from this last year.
