The White House is reportedly poised to escalate sanctions on the Russian energy sector, as revealed by a senior U.S. official on Thursday. This move is driven by ongoing concerns regarding Moscow’s substantial oil revenue, which continues to fund its activities amid the Ukraine conflict.
Daleep Singh, the Deputy National Security Adviser for International Economics, indicated that the U.S. might tighten sanctions on Russia’s oil trade. He noted that these sanctions are becoming increasingly necessary as crude oil sales remain a vital financial resource for the Russian government. Singh mentioned, “We are nearing a point where discussions about a much stricter regime could take place,” underscoring that enhanced restrictions would target both the transportation fleet and the volume of crude Russia can sell internationally.
In response, Russian Deputy Foreign Minister Sergey Ryabkov characterised the U.S.’s potential actions as part of a broader strategy of political and psychological pressure. He stated that the escalation of sanctions is indicative of American impotence in global affairs, declaring that “threats and pressure are the only instruments left” in the U.S.’s foreign policy toolkit. Ryabkov cautioned against overestimating the impact of these measures, asserting that key segments of Russia’s energy sector have long been under sanction.
The G7 nations previously implemented a price cap alongside an embargo on Russian seaborne oil to undermine the Russian economy while ensuring that crude supplies continue to flow into global markets. Introduced in December 2022, these restrictions prohibit Western firms from providing essential services for the shipment of Russian oil unless the cargo is priced at or below $60 per barrel, significantly below current market levels.