Bidens Hard sanctions stop Russian oil to finance the Ukraine War

Bidens Hard sanctions stop Russian oil to finance the Ukraine War

The bid administration reacted on Friday with some of the toughest sanctions against the energy sector of Russia, including the oil industry. The aim of these measures is to prevent the financing of Moskaus war against Ukraine

Harsh sanctions before a leadership transition

The comprehensive measures were announced just a little more than a week before the end of the term of the term of President Joe Biden, while the elected President Donald Trump gives himself preparing for a meeting with Russian President Vladimir Putin. These sanctions could unsettle possible investors in the energy markets.

objective of the new sanctions

Senior officials from the US administration stated that they wanted to leave Kiev-and the upcoming Trump administration-a strong hand for possible negotiations. There is hope that the next administration will maintain and enforce the sanctions, despite the previous skepticism of some Trump representatives regarding the effectiveness of such measures.

extensive measures against Russia's oil industry

The new sanctions against "the largest and most important source of income of the Kremlin" affect hundreds of destinations, including two large Russian oil companies: the public joint stock company Gazprom Neft and Surgutneftegas. In addition, almost 200 oil tankers are targeted, many of which are accused of being part of the so -called "shadow fleet", who tries to avoid sanctions. Oil dealers and Minister of Energy are also on the list of measures. In addition, Russia's production and export of liquefied natural gas (LNG) will also be affected.

financial effects for Russia

"We expect our measures to cost Russia billions of dollars every month," said a high -ranking official from the administration.

representation of the military support program

The sanctions introduced in coordination with the United Kingdom are part of a more comprehensive approach of administration to support Kiev. The Biden administration on Thursday has the Last tranche of military help for Ukraine in the amount of about 500 million dollar announced. "These sanctions, together with the measures we have taken in the past few weeks, help to get into a position in which you can work with the upcoming administration to find a fair peace," added another high -ranking civil servant.

Trump's goal to terminate the conflict

Trump confirmed his goal on Thursday to end the war in Ukraine and noticed that Putin "wanted to meet one and we are preparing it. "President Putin wants to meet - he even said that in public - and we have to end this war. This is a bloody mess," he emphasized.

enforcement of sanctions and possible circumvention attempts

The first high-ranking civil servant recognized that it is entirely "left to the Trump team to decide whether, when and under what conditions they may be canceled." In addition, the effectiveness of the sanctions depends heavily on their enforcement. "We have to answer any circumvention with a countermeasure, and that requires political will," he added.

"Russia will make all efforts to avoid these sanctions. It is inevitable," said the first official. "But bypass is not free. Russia has constantly having to adapt and reorient its supply chains. This creates inefficiencies, uncertainties and complexity. Our sanctions act as sand in the gears of Russia's war machinery," said his assessment.

no secondary sanctions against third countries

The measures from Friday do not include secondary sanctions against specific countries. China and India imported large amounts of Russian oil during the war in Ukraine. The officials explained that they had been waiting until the last days of administration to introduce the sanctions partly due to the global oil market and the potential effects on the US economy.

oil prices and economic influences

Russia's invasion in Ukraine in early 2022 proved possible serious interruptions from one of the leading producers of the world. Oil prices increased up to $ 130 per barrel in March 2022, which contributed to the inflation crisis in the US economy and the gasoline prices drove to record heights.

"During the majority of this war, the global stocks were scarce and ran danger not to meet demand," said the first high -ranking official. This could probably have increased the income of Russia and at the same time raised the prices at the petrol pumps for families in the USA and all over the world.

Current market developments

Now, according to the official, both the oil markets and the US economy are "in a fundamentally better position". The United States produce more oil than any nation in the history of the world, which has caused Opec to reduce production. The oil prices remain relatively stable, partly due to the record-breaking US production.

Nevertheless, oil prices rose strongly on Friday morning before the official sanctions were announced, with some retailers blaming rumors about sanctions. US raw oil climbed by 4 % to almost $ 77 per barrel. Brent-Rohöl, the worldwide benchmark, increased by 3.7 % to about $ 80 per barrel.