Trump administration plots tougher sanctions on Russian oil
The newly inaugurated President of the USA, Donald Trump, is laying the groundwork for a future agreement between Russia and Ukraine. The key mechanism is expected to be even stricter sanctions aimed at persuading Vladimir Putin to negotiate.
Donald Trump will officially begin his presidency on January 20. As he announced, he will strive for a swift end to the war in Ukraine, although this process may take many months.
Trump has a plan to encourage Vladimir Putin to negotiate with Ukraine. The primary tactic is sanctions, which involve tightening secondary sanctions on those who continue to buy Russian oil. According to Bloomberg, the USA may also intensify inspections of ships carrying Russian oil through the Danish or Turkish straits.
The publication indicates that there might be some concessions on sanctions if Russia decides to negotiate. Trump's advisors are already developing a comprehensive sanctions strategy to facilitate a diplomatic agreement between Russia and Ukraine.
Trump's team is preparing an oil sanctions plan
Scott Bessent, who was nominated by Donald Trump as the future head of the Treasury Department, said during a Senate hearing on Thursday that he is entirely ready to increase sanctions, including those against Russian oil giants, if the president's strategy necessitates it. He also supported maintaining the Federal Reserve's independence.
Bessent discussed sanctions against Russia during a hearing before the Senate Finance Committee, which was part of the process of confirming him for the new position.
I think if any officials in the Russian Federation are watching this confirmation hearing, they should know that if I'm confirmed, and if President Trump requests as part of his strategy to end the Ukraine war, that I will be 100% on board with taking sanctions up --especially on the Russian oil majors -- to levels that would bring the Russian Federation to the table - declared the financier.
Bessent assessed that previous sanctions were not strict enough but acknowledged his surprise that the outgoing administration decided to impose restrictions on the Russian oil sector only just before the end of its term, leaving the issue of 9 percent higher oil prices to their successors.
