The Biden administration on Friday unveiled its most extensive sanctions package yet against Russia’s oil and gas revenues, aiming to pressure Moscow financially while also giving Ukraine — and the incoming Trump administration — more leverage to strike a peace deal. These measures target the revenue streams that have funded the war since it began in February 2022, a conflict that has left tens of thousands dead or wounded and ravaged entire cities.
John Kirby, spokesperson for the National Security Council, explained that the timing was chosen because global oil markets and the U.S. economy are in a stronger position to absorb any disruptions. He noted that benchmark oil prices have fallen roughly $35 per barrel since Russia’s invasion, while average U.S. gas prices dropped from around $4 to just over $3 per gallon.
This new sanctions package hits a broad swath of Russia’s energy apparatus — from producers and tankers to intermediaries and trading networks — and is seen by U.S. officials as the “most significant sanctions yet” on Russia’s energy sector. It includes measures against Russian giants Gazprom Neft and Surgutneftegas, plus sanctions on 183 vessels, many of them older, non-Western tankers in the so-called “shadow fleet.” These ships often ferry oil to India and China, destinations that have taken on a bigger share of Russian oil exports since the G7 imposed a price cap in 2022.
When asked whether earlier, higher fuel costs had delayed tougher action, Kirby bluntly acknowledged that they had. He also insisted these latest measures aren’t intended as a direct bargaining chip for the next administration. “We don’t see any sign that either side is ready to negotiate,” he said, though the Trump administration will inherit these policies upon taking office.
Oil markets reacted swiftly. Brent crude jumped more than 3%, edging closer to $80 per barrel. News of the coming sanctions spread among energy traders in Europe and Asia before the official announcement, contributing to the price spike.
Alongside sanctions, the Biden administration has supplied around $64 billion in military aid to Ukraine since the war began. This week alone, another $500 million in air defense missiles, munitions, and fighter-jet support was approved. Ukrainian President Volodymyr Zelenskyy praised the latest sanctions, calling them a significant blow to “the financial foundation of Russia’s war machine.”
Friday’s move follows earlier rounds of sanctions in November, targeting major Russian banks like Gazprombank as well as dozens of ships carrying Russian oil. Officials in Washington believe these measures have contributed to the ruble’s steep decline and forced Russia’s central bank to hike interest rates above 20%.
Biden administration sources say Trump aides have been briefed on these new policies. Any attempt by the Trump team to reverse or loosen these sanctions after January 20 must follow legal protocols that include notifying Congress, which can exercise a vote of disapproval. Several Republican lawmakers have already urged President Biden to clamp down harder on Russian energy revenue, suggesting they may not support any quick repeal of the measures.
As Trump’s inauguration nears, speculation persists about a diplomatic resolution that could end Russia’s invasion of Ukraine. Some in Kyiv worry that a hurried settlement could force Ukraine to relinquish large swaths of its territory. Trump’s advisers have reportedly suggested peace plans with terms heavily favoring Moscow, though the Trump transition team has not publicly commented on these sanctions. Regardless, Biden officials underscore that the military aid and sanctions now in place give the next administration added leverage to push for a lasting peace — if and when negotiations truly begin.
