US President Joe Biden has admitted that the latest package of American sanctions targeting Russia’s oil industry could harm ordinary Americans, saying they may lead to a slight increase in gas prices.
On Friday, the US Treasury Department unveiled a “sweeping” round of sanctions on Russia, imposed in coordination with the UK. The measures target two major oil producers, Gazprom Neft and Surgutneftegaz, as well as their subsidiaries and entities providing insurance and transportation services. Over 180 vessels allegedly used to transport Russian oil in defiance of Western restrictions, which the US has described as a ‘shadow fleet’, were also sanctioned.
Asked whether he is concerned that the sanctions could lead to gas prices going up, Biden said the possibility cannot be ruled out. “It is probable that gas prices could increase by as much as three or four cents a gallon, but the sanctions will have a more significant impact on Russia’s ability to continue its actions in the conduct of war,” he said.
“These restrictions will have a profound effect on the growth of Russia’s economy,” Biden argued, adding that the sanctions aim to hinder Moscow’s ability to finance its military operations.
The sanctions package arrives less than two weeks before the end of Biden’s term. President-elect Donald Trump has been critical of Biden’s approach to the Ukraine conflict and vowed to swiftly end the hostilities.
Moscow has dismissed the restrictions, calling them “illegal.” President Vladimir Putin has said Russia has overcome the challenges caused by the sanctions, crediting them with boosting domestic industries.
Commenting on the new restrictions, Russian Foreign Ministry spokeswoman Maria Zakharova said Biden’s legacy will be defined by the “mess” he leaves behind.
Oil prices surged by nearly 3% on Friday, hitting a three-month high as traders anticipated supply disruptions from the expanded sanctions.