The US is debating sanctions against Russian tankers

The US Treasury is proposing to gradually impose sanctions on Russian vessels, but the White House fears rising oil prices.

The US Treasury Department proposes to direct sanctions against the outdated Sovcomflot tankers that operate without insurance, the New York Times writes.

At the same time, economic advisers in the White House fear that this may lead to an increase in oil prices and gasoline prices in the US, thus preventing the re-election of President Joe Biden for a second term.

The White House did not approve these proposals, despite the fact that the Ministry of Finance provided an analysis according to which the risks of impact on the oil market from such a step are insignificant.

This dispute is a manifestation of internal disagreements in the administration on policy issues regarding Ukraine – between the Treasury Department and aides at the White House’s National Economic Council.

The so-called Russian “shadow fleet” has approximately 120 tankers, 20 of which are already under sanctions. Currently, the Ministry of Finance proposes to impose sanctions on the remaining vessels gradually to minimize the impact on prices.

The White House, without commenting on the dispute, released a statement from Amos Hochstein, the president’s senior energy adviser.

“Our energy enforcement actions are focused on forcing the Russian Federation, Iran and other unscrupulous players to pay a high price, while preventing a spike in energy prices that would not only hurt American consumers but also increase the profits of the same unscrupulous players who we are trying to prosecute,” the statement said.

Previously, USM reported that in June, the European Union for the first time imposed sanctions against the Russian “shadow fleet” and vessels transporting stolen Ukrainian grain.