US President Joe Biden’s administration has taken a decisive stance on Russian oil sanctions in its final days, targeting key revenue sources of the Kremlin. The move is part of a broader effort to squeeze Russia, with crude oil prices hitting their highest level since August.
The US has blacklisted almost 200 vessels from Russia’s shadow fleet and targeted Gazprom Neft and Surgutneftegas, two major Russian oil producers. Analysts say this latest measure is “a painful blow” for Moscow, forcing them to lay up ships in harbors around the world.
The Biden administration’s move was reportedly motivated by an expectation that global oil markets will be oversupplied in 2025, but it could also limit Russia’s ability to sell its oil on global markets above $60. However, experts say the latest development is a “very welcome” relief for Ukraine and Europe.
Experts believe this measures aims to force Russia to comply with the existing price cap, or risk facing further sanctions. The decision is seen as key in maintaining pressure on Russia’s economy.
While some analysts argue that US oil sanctions are having limited impact, others say they could be a crucial factor in bringing an end to the war. “The less revenue Russia earns from oil,” Ukrainian President Volodymyr Zelenskyy said, “the sooner peace will be restored.”
As tensions between Russia and Ukraine continue, this latest development marks a turning point for US policy on Russian energy. Experts say it’s time for coalition countries to maintain sanctions until the shadow fleet is history.
Source: https://www.dw.com/en/us-oil-sanctions-on-russia-whats-behind-joe-bidens-move/a-71288276