After the elections, US President Joe Biden plans to deal a farewell blow to Russian President Vladimir Putin's military fund. The administration is considering new serious sanctions in the energy sector. However, according to a Washington Post article, Biden may avoid measures that would raise gas prices even in his last days as president, Focus reports.
The newspaper adds that the new sanctions would give President-elect Donald Trump's team greater leverage in negotiations with Vladimir Putin to end the war in Ukraine.
American media reports that the sanctions will target the "shadow fleet" and Russian oil exporters that have not been blacklisted so far. Even revoking licenses that allow banks to process transactions in Russian energy products is being considered. If such measures are imposed, they could help shape Biden’s economic and foreign policy legacy before Trump takes office.
"The goal of new major sanctions should be a double-digit decline in export revenues within six to 12 months," said Peter Harrell, former senior director of the International Economics Program in the Biden administration.
"Even with a significant hit, Russia will continue to generate substantial export revenues. Sanctions are an iterative process that requires consistency. New restrictions on energy could have a solid effect."
A senior administration official described the efforts as key to putting Ukraine in "the best possible position" to defend and negotiate peace on "fair terms".
"This action would be another step towards achieving that goal," the official said.
The Western price cap has limited some of the Kremlin's energy revenues, but Russia continues to look for ways to export to non-Western markets such as China and India.
"If sanctions reduce Russian exports even partially, it could have a minimal impact on global prices, but the market is now in a more stable state," the source said. "Energy remains Russia's main source of revenue, and tightening sanctions could be a fitting end to Biden's campaign to limit Russian resources," Harrell added.