Biden Administration Weighs New Sanctions on Russian Oil Before Trump Takes Office
Washington D.C., Wednesday, 11 December 2024.
The Biden administration is considering stricter sanctions on Russia’s oil sector to weaken its economy and military capabilities ahead of Trump’s upcoming presidency.
Current Administration’s Final Push
The Biden administration is actively developing new restrictions targeting Russia’s lucrative oil trade, with details still being finalized [1]. This initiative comes as part of a broader strategy that recently included sanctions on Gazprombank and over 50 other Russian financial institutions, implemented on November 20, 2024 [2]. These measures aim to curtail the Kremlin’s ability to finance its ongoing war in Ukraine before President-elect Donald Trump assumes office on January 20, 2025 [1][2].
Economic Pressure Points
Russia’s economy shows significant vulnerabilities that these new sanctions could exploit. The country is experiencing inflation above 8% and the ruble recently hit its lowest point in two years [5]. The Kremlin’s military spending is set to increase by 25% in 2025, consuming over 6% of GDP [5]. With oil and gas exports accounting for approximately one-third of government revenue [5], new sanctions could potentially create substantial pressure on Russia’s financial stability [1].
Transition of Power Implications
The timing of these potential new sanctions is particularly significant given the upcoming change in U.S. leadership. President-elect Trump, who won the election on November 5, 2024, has expressed skepticism about continuing U.S. support for Ukraine and has claimed he could end the conflict within 24 hours [5]. This stance has created urgency within the current administration to establish stronger economic pressures on Russia before the transition of power [1][5].
International Coordination and Impact
The effectiveness of these proposed sanctions would be enhanced by existing measures, including the G7’s oil price cap mechanism, though Russia has partially circumvented this through its shadow fleet of tankers [5]. The U.S. Treasury reports that 90% of Russian crude oil exports now go to China and India, transported by over 400 tankers [5]. The administration is considering targeting individual ships to strengthen enforcement of the oil price cap, potentially creating a more comprehensive approach to limiting Russia’s energy revenue [5].