US plans to disrupt Russian oil shipments amid sanctions

(MENAFN) The United States is aiming to implement new strategies designed to cripple an aging fleet of oil tankers that facilitate the delivery of Russian oil to international buyers, despite existing Western sanctions. This initiative, according to a report published by a US-based newspaper, is being spearheaded by officials within the U.S. Treasury Department.

In an effort to deprive Russia of the financial resources needed to sustain its military operations in Ukraine, the United States and its allies have imposed sanctions aimed at curtailing Moscow’s oil revenue. However, Russia has developed methods to circumvent these restrictions, intensifying the pressure on President Joe Biden’s administration to enhance enforcement measures. The Treasury officials' plan focuses on targeting the so-called "shadow fleet" of oil tankers, which enables Russia to sell oil at prices exceeding the USD60-per-barrel cap established by the United States and its allies in 2022.

Conversely, there is concern among economic advisers within the White House that this plan could lead to a rise in oil prices during the summer, potentially harming President Joe Biden’s prospects for re-election. Despite these concerns, the proposals have not yet received approval. Current and former Treasury officials have provided analyses suggesting that the likelihood of a significant impact on the oil market is minimal.

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