In recent news, the White House has indicated that it may escalate sanctions on Russia’s energy sector. This revelation came from deputy national security adviser for international economics, Daleep Singh, who stated that tightening sanctions on Russia’s oil trade could be in the near future. These upgraded restrictions would impact both the fleet transporting oil and the amount of crude that Russia is allowed to supply to the market.
Russian Deputy Foreign Minister Sergey Ryabkov responded to these warnings, stating that US plans for ramping up sanctions on Russian oil supplies are “one of the elements of political and psychological pressure on the Russian business community.” He claims that “threats and pressure are the only instruments left in the kit tool of American foreign policy.” Ryabkov also emphasized that “I’d like to warn everyone against overestimating the significance of the steps being taken by the US. Key parts of our energy sector have been under sanctions for a very long time. These sanctions are absolutely illegitimate, they stem from the impotence of the American, as they consider themselves, rulers of the world.
The G7 nations introduced the price cap along with an embargo on Russian seaborne oil in December 2022 and were followed in February 2023 by similar restrictions on exports of Russian petroleum products. The measure bans Western companies from providing insurance and other services for shipments of Russian crude, unless the cargo is purchased at or below $60 per barrel, a level significantly below the current market price. This move was aimed at hitting Russia’s economy while still keeping Russian crude flowing to global markets.
As the tension between the US and Russia continues to escalate, it remains to be seen how these potential sanctions will impact both countries and the global energy sector as a whole. With increasing pressure from the White House, the situation is likely to remain volatile for some time.