Biden weighs new Russia energy sanctions, but fuel price concerns hinder action.

Biden May Impose New Sanctions on Domestic foreign exchange transactionsRussia, Focusing on the Energy Sector

According to The Washington Post, U.S. President Joe Biden is considering a new package of significant sanctions against the Russian energy sector. These measures might include targeting Russian oil export companies, the so-called "shadow fleet" of tankers reportedly used to transport Russian energy resources, and revoking licenses for banks that facilitate energy transactions with Russia.

Sanctions Focus on the Energy Sector

Sources indicate that these sanctions aim to further restrict Russia's energy export capabilities and cut off its access to revenue through global trade networks. The "shadow fleet" refers to tankers that, although not sanctioned, assist in transporting Russian oil. The Biden administration may take actions to freeze these vessels' activities to reduce the scale of Russian energy exports.

Additionally, the U.S. government is considering revoking certain banks' licenses to hinder their ability to assist with Russian energy transactions, a move that could significantly weaken the Russian energy sector's international market channels.

Concerns Over Rising Domestic Fuel Prices

Despite the stringent plans, Biden remains cautious about implementing these sanctions. The Washington Post notes that Biden fears the new sanctions could trigger a fresh surge in domestic fuel prices, adversely affecting the U.S. economy and public. Fuel prices have been a crucial issue for the Biden administration, making it a key challenge to balance the sanctions' impact and domestic economic stability in the final weeks of his term.

Background: Sanctions' Goals and Challenges

Over the past year, the U.S. and its allies have imposed multiple rounds of economic sanctions on Russia, covering energy, finance, and high-tech sectors. However, areas like the "shadow fleet" have not been fully addressed. Analysts suggest that the Biden administration seeks to strengthen restrictions on the Russian energy sector with new sanctions while carefully evaluating potential economic repercussions.

As President Biden's term nears its end, these plans might become one of the last measures in his Russia policy. There is widespread attention on whether these sanctions, if implemented, will pressure U.S. domestic oil prices and impact the global energy market.

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