The US is considering toughening sanctions on Russia’s oil exports to weaken President Vladimir Putin and the country’s economy. The US could also impose sanctions on its tanker fleet that transports oil to other countries. The restrictive measures from the US could pose a challenge to Russia, which is keeping its economy afloat by selling oil at discounted prices.
Also Read: BRICS: India Makes Huge Announcement on New Currency
The Biden administration will squeeze the Russian economy just weeks before Donald Trump takes office, reported Bloomberg. The new measures are being worked out to target Russian oil, which will also affect other BRICS countries. BRICS members were buying oil for cheap due to the sanctions and in return helped its economy.
BRICS member Russia has been steadily selling its crude oil at cheaper prices to China, India, Saudi Arabia, and other allies. Last year, Saudi Arabia laundered Russian oil all over Europe at marked-down prices. Even the alliance of the Gulf Cooperation Council (GCC), which consists of seven Middle Eastern countries, openly announced its support for Russia, saying it would procure its oil.
Also Read: De-Dollarization: 2 Countries Settle $37 Billion in Local Currencies
Also, BRICS country India had saved $7 billion in exchange rates by buying Russian oil using local currencies and not the US dollar. All of this could come to an end if the US tightens sanctions for Russian oil procurement.
BRICS: Tighter Sanctions on Russia’s Oil Exports on the Cards
Source: newscast-pratyaksha.com
If the US tightens the screws on sanctions, Russia will find it hard to get takers for its crude oil. The BRICS members might fear consequences from the White House and pause procuring Russian crude. A total of 106 tankers have been sanctioned for carrying Russian oil to other countries.
Also Read: The US Dollar’s Clout Is Decreasing Globally, Says BRICS
Apart from the US, the European Union (EU) is also planning similar measures to sanction Russia’s shadow fleet tankers. The EU is also expected to target individuals or companies that get involved in the oil trade.
