US plans to impose new sanctions targeting tankers carrying Russian oil

The Biden administration plans to impose new sanctions targeting tankers carrying Russian oil sold above the $60 per barrel price cap, aiming to curtail Russia’s oil revenue used to fund its war in Ukraine.

These measures will focus on Russia’s “shadow fleet” of aging vessels, which are often unsafe and prone to oil spills. Since the 2022 invasion of Ukraine, the U.S. has sanctioned dozens of such ships, though the fleet numbers in the hundreds.

Key points:

• Redirection of Oil: Russia has redirected oil sales to China and India, which purchase discounted Russian crude, even when sold above the cap.
• Additional Measures: Sanctions may also target individuals involved in trading oil above the cap and could extend to Chinese banks supporting such transactions, according to Treasury Secretary Janet Yellen.
• Broader Efforts: These sanctions align with the G7, EU, and Australia’s late 2022 measures, which banned the use of Western services for oil shipments priced above the cap.

Info via Reuters

This article was written by Eamonn Sheridan at www.forexlive.com.