US President Joe Biden has just spoken out about the latest package of US sanctions targeting Russia's oil industry, admitting that these measures could have a negative impact on the American people, especially the possibility of causing a slight increase in gasoline prices.
On January 10, the US Treasury Department announced a new round of “large-scale” sanctions, in coordination with the UK. The measures target two major Russian oil producers, Gazprom Neft and Surgutneftegaz, along with their subsidiaries, insurance and shipping services. More than 180 vessels believed to be transporting Russian oil in defiance of Western sanctions – the so-called “dark fleet” – were also included in the sanctions list.
Asked about the risk of higher gas prices, Mr. Biden said that “cannot be ruled out.” “There is a possibility that gas prices will increase by about 3 or 4 cents a gallon, but these sanctions will have a much more profound impact on Russia’s ability to continue to act militarily,” he said.
Mr Biden asserted that the sanctions were aimed at weakening the Russian economy, making it difficult for Moscow to finance its military activities.
The sanctions package was announced less than two weeks before Mr Biden leaves office. President-elect Donald Trump has repeatedly criticized Mr Biden’s approach to the conflict in Ukraine and pledged to quickly end it.
Moscow has dismissed Washington’s sanctions as “illegal.” Russian President Vladimir Putin said Russia had overcome the difficulties caused by the sanctions, even claiming they had spurred the development of domestic industries.
World oil prices rose nearly 3% on January 10, hitting a three-month high as traders worried about supply disruptions due to expanding sanctions.
