Biden targets Russian oil revenues to bolster Ukraine as presidency ends

The Washington Post reported the information.

In the final weeks of his presidency, U.S. President Joe Biden is considering implementing significant sanctions on Russia’s energy sector. This potential move aims to strike a final blow in the ongoing economic conflict with Moscow and ensure leverage for the incoming Trump administration in negotiations with Vladimir Putin regarding the war in Ukraine, according to anonymous sources familiar with the discussions.

The proposed measures target international vessels transporting Russian oil to non-Western nations and previously unsanctioned Russian energy exporters. Additionally, revoking a license for banks to process Russian energy payments is under consideration. These actions could solidify Biden’s foreign policy legacy while handing over a stable economic landscape to his successor, though concerns about potential impacts on gas prices remain.

For much of his presidency, Biden has avoided aggressive sanctions on Russian energy exports to prevent spikes in global oil prices and domestic fuel costs. However, with inflation under control and the election concluded, some experts argue that the administration no longer has reasons to hold back. Edward Fishman of Columbia University’s Center on Global Energy Policy remarked that Biden now has more flexibility to impose tougher penalties.

Russia’s economy has faced increasing strain due to existing sanctions, with inflation rising and interest rates soaring. Yet, its energy sector remains a key revenue source, generating substantial funds to support the war effort. Experts like Peter Harrell from the Carnegie Endowment for International Peace suggest that new sanctions should aim for a significant decline in Russian export revenue, though they acknowledge that Russia’s energy exports are unlikely to be completely stifled.

A price cap led by Western allies has curbed some of Russia’s energy profits, but the Kremlin has circumvented these measures by selling to non-Western buyers, particularly in China and India. Recent shifts in global energy markets, including increased production by the U.S. and other nations, have created conditions where additional sanctions might not cause severe price hikes at the pump.

Still, Biden’s focus on leaving the U.S. economy in strong shape remains a consideration. With both Biden and Trump advocating for stricter sanctions on oil exports from Russia and Iran, analysts caution that such moves could disrupt predictions of an energy surplus.

As Biden’s presidency winds down, maintaining pressure on Russia over its aggression in Ukraine remains a top priority. “Energy has been the lifeline for Russia’s war financing,” Harrell stated. Tightening sanctions further could serve as a decisive conclusion to Biden’s economic campaign against Moscow.