US sanctions on Russia’s oil industry expected over Ukraine war

The Biden administration is planning to impose more sanctions on Russia over its war in Ukraine, targeting its oil revenues by taking action against tankers carrying Russian crude, sources told Reuters

The Biden administration has sought to boost support for Ukraine before President-elect Donald Trump takes office on January 20, 2025, given his repeated complaints about the cost of US support for Ukraine.

“It’s a very large sanctions package, two Russian oil companies, over 100 tankers, Russian oil traders, Russian insurance companies, etc,” one US official told Reuters, without naming the entities.

The Biden administration is planning to impose sanctions targeting tankers carrying Russian oil sold above the Western price cap of $60 a barrel, the sources told Reuters.

Even if it is sold above the cap, Russian crude is typically sold at a discount to the overall market, with China and India willing to buy Russian supplies.

The first US official told Reuters that the US administration had informed the Indian foreign ministry of the upcoming sanctions, noting that the market was flush with oil and that the fact that oil prices were low could help India meet its crude requirements. A second source told Reuters that the sanctions were likely to target some people involved in oil trading networks above the cap.