Oil traders and dozens of shadow fleet vessels may fall under new US sanctions

The United States is planning to significantly tighten sanctions on tankers carrying Russian oil.

The Biden administration is planning to impose additional sanctions on Russia, targeting tankers carrying Russian oil, Reuters reported, citing three sources.

“It’s a very significant package. Two Russian oil companies, more than 100 tankers, oil traders, Russian insurance companies, etc.,” one of the officials said, without naming the organizations.

The sources said the Biden administration is planning to impose sanctions on tankers carrying Russian oil that is sold above the Western-set price ceiling of $60 per barrel.

The US administration has informed India’s foreign ministry of the upcoming sanctions, the first official said, noting that the market is saturated with oil and low prices could help India meet its needs.

A second source said the sanctions were likely to target some people involved in networks trading oil above the maximum price.

Russia has been using a so-called shadow fleet of aging ships to evade restrictions. Many of them are less safe and prone to oil spills, shipping experts say.

After Russia’s invasion of Ukraine in February 2022, the United States has imposed sanctions on dozens of ships out of hundreds helping Moscow finance the war.

U.S. Treasury Secretary Janet Yellen told Reuters last month that the United States was considering further sanctions on tankers and had not ruled out sanctions on Chinese banks as it seeks to cut off Russia’s oil revenues and access to foreign supplies.

USM previously reported that the European Union was preparing sanctions on the Russian fleet in response to damage to an undersea cable.