Biden Administration Plans to Impose New Sanctions Against Russia’s Shadow Fleet

The Biden administration is preparing a comprehensive sanctions package aimed at disrupting Russia’s ability to finance its war against Ukraine by targeting tankers transporting Russian oil.

The measures will focus on vessels selling oil above the $60-per-barrel price cap set by Western nations, according to two sources familiar with the plans, as reported by Reuters on January 6.

The proposed sanctions will include restrictions on tankers involved in transporting Russian oil sold above the price cap, as well as measures against individuals and networks facilitating these transactions. “This will be a significant package of sanctions,” one source noted.

Russia has been using a shadow fleet of outdated vessels to circumvent restrictions on oil exports. Experts say these ships are not only less secure but also more prone to environmental hazards, including oil spills.

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Since Russia’s full-scale invasion of Ukraine in February 2022, the United States has imposed sanctions on dozens of such vessels. However, Russia has redirected much of its oil trade to countries like China and India, often selling at a discount compared to global market prices but still above the Western price cap.

In December 2024, US Treasury Secretary Janet Yellen suggested that additional measures might include targeting financial institutions, such as Chinese banks, if they are found to facilitate these transactions. The goal is to reduce Russia’s energy revenues and its access to foreign supplies critical for sustaining its war efforts.

Earlier, the UK imposed sanctions on 20 vessels from Russia’s shadow fleet, which had transported millions of barrels of Russian oil in 2024. These measures, part of broader sanctions targeting Russia’s energy sector, also included companies such as 2Rivers DMCC.