Biden Plans New Sanctions on Russia's Energy Sector in Final Weeks of Presidency, WP Reports

US President Joe Biden is considering imposing new, broad sanctions on Russia, potentially affecting the country’s energy sector, The Washington Post reported on December 24.

According to the publication citing unnamed sources, the sanctions would target Russia’s shadow fleet and oil exporters who have so far been exempt from restrictions. There is also ongoing discussion about the possibility of revoking licenses that allow banks to process transactions related to Russian energy exports.

Such measures would give President-elect Donald Trump’s team greater leverage in negotiations with Russian leader Vladimir Putin over ending Russia’s war in Ukraine, WP writes.

Edward Fishman, a senior research scholar at Columbia University’s Center on Global Energy Policy, explained that while the Biden administration had previously refrained from implementing strict sanctions on Russian energy exports due to concerns about rising gas prices and inflation, those reasons are no longer as pressing.

“But the election is over, and inflation is under control. The reasons to be this cautious on sanctions don’t apply anymore,” he added.

A senior administration official told WP that the new sanctions are crucial to ensuring Ukraine is in the best possible position to defend itself and negotiate for a fair peace settlement.

“This action would be another step toward achieving that objective,” the official noted.

It was also noted that energy sales remain a key revenue source for the Russian government, with the Kremlin earning around $100 billion from energy exports last year, according to S&P Global.

It was reported previously that the Biden administration is set to announce a $1.2 billion package under the Ukraine Security Assistance Initiative (USAI) in the coming days. The funds will be used to procure new weapons for Ukraine, Reuters reported on December 20.