Key Takeaways
- President Trump expressed openness to a Senate plan imposing sanctions on countries doing business with Russia.
- The proposed legislation could target nations heavily reliant on Russian oil, particularly China and India.
- This move comes after months of congressional pressure to take stronger action against Russia’s economic ties.
- Ukraine continues to target Russian energy infrastructure, while Russia escalates its own attacks on Ukrainian territories.
- Russia’s oil exports are experiencing a decline due to logistical issues exacerbated by sanctions and ongoing conflict.
US Senate Considers Tough Sanctions on Countries Trading with Russia
President Trump indicated his approval of a Senate proposal aimed at penalizing nations that continue their business dealings with Russia. Speaking to reporters in Florida, Trump stated that the Senate’s plan to impose sanctions would be okay with me. This statement was made before his departure back to the White House.
The push for more stringent measures against countries purchasing Russian energy has been building for months, driven by pressure from lawmakers. Trump acknowledged the bipartisan efforts, noting that The Republicans are putting in legislation that is very tough sanctioning, etcetera, on any country doing business with Russia.
Key figures behind this legislative initiative include Senator Lindsey Graham, a long-time advocate for such measures, and Senate Majority Leader John Thune. Thune had previously suggested readiness to bring the bill to a vote in October, though a specific timeline was not committed.
Proposed Tariffs Target Countries Buying Russian Oil
The proposed legislation grants President Trump the authority to implement tariffs of up to 500% on imports from countries that persist in purchasing Russian oil and do not support Ukraine. The primary focus of these potential sanctions appears to be China and India, both significant buyers of Russian crude oil.
Additionally, there is consideration for including Iran under similar sanctions, although specific details regarding this possibility or any timeline for such a decision were not provided. Lawmakers from both political parties have been advocating for new measures to weaken Russia’s economy as the conflict extends beyond its fourth year.
For a considerable period, President Trump had withheld support for this legislative plan, ostensibly to encourage peace talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy. Despite hosting Putin in Alaska, the Russian leader has not lessened the intensity of the assault on Ukraine.
In parallel, Ukraine has intensified its strikes on Russian energy facilities. Meanwhile, Russia’s military operations continue, including efforts to capture the strategic rail hub of Pokrovsk. Ukrainian officials reported a successful strike on Rosneft PJSC’s Novokuybyshevsk refinery in the Samara region, resulting in explosions and fire.
Shifting Oil Flows Amid Attacks on Russian Supply Lines
Russia’s Black Sea port in Novorossiysk has resumed oil loading operations following a two-day interruption caused by a Ukrainian cruise-missile strike. This information was reported by sources including Bloomberg and LSEG.
Ship-tracking data indicated that by November 16, two crude tankers, the Arlan and the Rodos, along with the Yanbu oil-products carrier, were docked at the terminal. According to Ukraine’s General Staff, the attack in Samara was part of a broader strategy to disrupt Russia’s capacity to supply fuel and ammunition to its armed forces.
📈 Russia’s seaborne crude exports have seen a decline for the third consecutive week, reaching a two-month low. Data compiled by Bloomberg shows shipments averaging 3.45 million barrels per day over the four weeks ending November 9, a decrease of 130,000 barrels per day compared to the preceding four-week period.
A notable quantity of Russian oil is reportedly stranded on tankers due to slow discharge rates, a situation exacerbated by U.S. sanctions. Further delays are anticipated beyond November 21, the deadline for receiving oil linked to sanctioned entities such as Rosneft PJSC and Lukoil PJSC.
The Aframax tanker Ailana, for instance, was observed idle off Mumbai for a week before transferring its cargo to the Fortis. While the Fortis initially headed toward Kochi, its destination was altered to China after India did not accept the cargo. Current data indicates that Russian crude oil at sea has increased to over 350 million barrels, a rise of 7% since September.
Simultaneously, while Russia has increased its production, the availability of crude for export is growing, partly due to output increases from eight OPEC+ nations that are easing earlier production cuts. Fuel that cannot be refined due to damaged facilities is reportedly being redirected to export terminals.
Final Thoughts
The U.S. is considering implementing significant sanctions against countries continuing trade with Russia, particularly those importing Russian oil. This potential policy shift highlights the ongoing international response to the conflict in Ukraine and its economic repercussions.
