Biden to deliver farewell blow to Russia: US preparing unpleasant "surprise" for Putin

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US President Joe Biden plans to end his term with a high-profile move: imposing tough sanctions on Russia's energy sector. According to The Washington Post , these measures are aimed at reducing Russia's revenues from oil and gas sales, which make up a significant portion of the country's military budget. The sanctions include restrictions on the "shadow fleet" - international vessels that transport Russian oil to non-Western countries - and new restrictions on Russian oil companies that have not been hit by sanctions so far. The revocation of licenses that allow banks to conduct operations with Russian energy resources is also under consideration .
Experts say the measures could cut energy export revenues by double-digit percentages within six to 12 months. Russia's budget comes from oil and gas sales, making the energy sector key to funding its war against Ukraine.
Previously, the Biden administration avoided taking drastic action against Russian energy, fearing rising oil and gasoline prices that could hurt American consumers. But the situation has changed: inflation in the United States has declined, and the elections are behind us. Experts note that global energy markets are now in a favorable position for tightening sanctions: supply exceeds demand, and oil prices remain well below 2022 levels.
The sanctions will also strengthen the hand of President-elect Donald Trump, who will have additional leverage over Putin in negotiations to end the war. Senior sources say the measures will provide Ukraine with the "best possible conditions" to protect its interests and achieve peace on fair terms.
While sanctions are expected to hit Russian revenues hard, analysts warn that Moscow will continue to earn significant revenues from exports. However, a sustained increase in sanctions pressure could be an important element in deterring aggression, experts say. "Energy is Russia's single largest source of revenue for funding its war. Tightening sanctions would be a powerful conclusion to Biden's campaign against the Kremlin ," said Peter Harrell, Biden's former director of international economics. As Joe Biden nears the end of his term, he is keen to cement his position as the leader of Western resistance to Russian aggression. If these sanctions are imposed, they would not only be a major blow to Putin’s budget, but also an important signal of continued international support for Ukraine.
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