Trump preparing new sanctions against Russia's shadow fleet – FT
US President Donald Trump's administration is considering imposing new economic sanctions on Russia's "shadow fleet" of oil tankers if Kremlin ruler Vladimir Putin does not agree to a ceasefire in Ukraine by 8 August.
Source: Financial Times, citing several well-informed sources within the White House
Details: The sources reported that Trump's administration is weighing up further sanctions against Russia's so-called "shadow fleet" – a group of ageing tankers used by the Kremlin to transport oil in defiance of Western sanctions. These measures could become the first example of fresh US sanctions against Moscow following Trump's return to the White House.
The Financial Times said the new sanctions are being seen as the first step in a strategy to ramp up pressure on the Kremlin. Trump, who had previously held off from taking a hard line, has now issued an ultimatum to Putin: either agree to a peace deal by Friday or face harsh sanctions.
Quote: "Under the terms of the sanctions regime, Western-linked companies are prohibited from buying seaborne oil priced above a G7 price cap fixed at US$60 a barrel for crude. The shadow fleet has allowed Russia to ship oil above the cap – mainly to China and India.
In early 2024, Biden administration officials were surprised to realise that listing individual ships – rather than their owners or managers – proved to be effective, with buyers of Russian oil reluctant to deal with vessels that had been named. The EU and UK took up the practice as a result."
Details: The Kremlin has ignored several deadlines set by Trump to reach a ceasefire and has significantly ramped up attacks on Ukraine in recent weeks.
Trump is said to be increasingly frustrated with Putin's position. Sources within the administration said Moscow will pay a heavy price if it does not come to the negotiating table.
White House officials said that Steve Witkoff, Trump's Special Envoy for the Middle East, would arrive in Moscow for talks on Wednesday and the next steps would depend on the outcome of his visit.
"It depends on what Witkoff brings back. If Witkoff comes back empty-handed, with absolutely nothing, Trump is going to go ballistic," a source close to the administration said.
"The president has been clear that there will be biting sanctions if Putin does not agree to end the war," White House Deputy Press Secretary Anna Kelly said.
Background:
- On 18 July, the EU approved the long-awaited 18th package of EU sanctions against Russia, which had been delayed due to opposition from Slovakia and Malta.
- The package contains sanctions against 26 more companies for circumventing sanctions, including 11 outside Russia – seven companies in China (three in Hong Kong) and four in Türkiye.
- The package imposes sanctions on 105 vessels from Russia's shadow fleet, lowers the price cap on Russian oil and targets banks and companies outside Russia that support its war effort.
- US Energy Secretary Chris Wright said at the time that imposing sanctions on Russian oil to end the war in Ukraine was a "very real possibility".
- On 5 August, Trump claimed that lower energy prices could influence Putin and force him to end the war against Ukraine.
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