US preparing major sanctions package against Russia's shadow fleet – Reuters
The Joe Biden administration is planning to impose additional sanctions on tankers transporting Russian oil and individuals involved in selling oil above the Western price cap, Reuters reported, citing informed sources.
Washington aims to target a "shadow fleet" of older vessels used by Russia to circumvent Western restrictions, which set a price cap of $60 per barrel. Many of these tankers are less safe and prone to oil spills.
Previously implemented U.S. sanctions against Russia's shadow fleet led the country to redirect its oil sales to China and India, which were willing to purchase oil even at prices above the cap.
"It's a very substantial package," one source told Reuters. Another source indicated that the sanctions are likely to include restrictions on individuals involved in networks trading oil above the price cap.
Last month, U.S. Treasury Secretary Janet Yellen told Reuters that the United States House is considering further sanctions on tankers and did not rule out sanctions against Chinese banks.
- In late 2022, G7 countries, the EU, and Australia imposed a $60 per barrel price cap on Russian oil, prohibiting the use of Western maritime services for oil shipments priced at or above this limit.
- Since 2022, Russia has spent approximately $10 billion on building its shadow fleet. Ukraine has opened a section on the War & Sanctions portal about the global shadow fleet.
- In late August 2024, the U.S. began imposing sanctions on Russian LNG tankers.
