US threatens Russia with new oil sanctions

The White House may escalate sanctions on the Russian energy sector, a senior US official revealed on Thursday. Moscow has said threats and pressure are the only tools remaining in the US foreign policy arsenal.

According to deputy national security adviser for international economics, Daleep Singh, sanctions on Russia's oil trade could be tightened as sales of crude still remain a major source of income for Moscow.

“I think we are getting close to the point at which we can talk about a much more strict regime,” Singh said in an interview with the Carnegie Endowment, explaining that upgraded restrictions would impact both the fleet transporting oil and the amount of crude that Russia is allowed to supply to the market.

Commenting on the warnings, Russian Deputy Foreign Minister Sergey Ryabkov told RIA Novosti 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 claimed that “threats and pressure are the only instruments left in the kit tool of American foreign policy.”

“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,” Ryabkov said.

The G7 nations have introduced the price cap along with an embargo on Russian seaborne oil in an effort to hit the country’s economy, while at the same time keeping Russian crude flowing to global markets. The restrictions were imposed 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.

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