Russia Sanctions Hamper Delivery of Moscow's Oil
The country has been able to keep loading crude onto ships, but it's having greater difficulty getting it off again.
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Welcome to our guide to the energy and commodities markets powering the global economy. Today, Oil Strategist Julian Lee assesses the impact of the latest US sanctions on key Russian flows.
Sanctions targeting Russia's oil sector are working, up to a point.
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Politico
8 minutes ago
- Politico
Graham wants to punish Russia with ‘bone-crushing' sanctions. It could backfire.
Sen. Lindsey Graham has pledged that his expansive sanctions bill would be 'bone crushing' for the Russian economy. But if enacted, the South Carolina Republican's proposal to impose 500 percent tariffs on any country that buys Russian energy would effectively cut the U.S. off from some of the world's largest economies — including allies in Europe. 'A 500 percent tariff is essentially a hard decoupling,' said Kevin Book, managing director of Clear View Energy Partners, an energy research firm. Graham appeared to acknowledge as much on Wednesday, when he proposed a broad carve-out for countries that provide aid to Ukraine. This exemption would spare the European Union, which continues to import almost 20 percent of its gas from Russia. But experts remain skeptical that the sky-high tariffs proposed in the Sanctioning Russia Act are in any way feasible. India and China buy roughly 70 percent of Russian energy exports, but several other countries that buy any oil, gas or uranium from Moscow — and aren't included in the carve-out — could also be exposed to tariffs under the bill. The United States, which is still reliant on imports of enriched uranium from Russia to fuel its nuclear reactors, could also run afoul of the bill. Edward Fishman, a senior researcher with the Center on Global Energy Policy at Columbia University, said countries in the crosshairs of the bill would struggle to halt their imports of Russian energy overnight. Tariffs of 500 percent on imports of goods made in China would send prices soaring, disrupt supply chains and could drive up U.S. unemployment to recessionary levels. Most likely, it would lead to a screeching halt in U.S. trade with China. 'It would hurt Americans quite a bit,' Fishman said. The legislation's goal, co-sponsored by Sen. Richard Blumenthal (D-Conn.), is to starve Russia's war economy, which continues to earn hundreds of billions of dollars from energy exports. There is widespread support for the overall objective, with 82 senators signing on to Graham's bill so far, and growing support for a companion bill in the House. The bill is likely to change significantly as it moves through Congress and in consultations with the Trump administration, said Matt Zweig, senior policy director of FDD Action, a nonprofit advocacy organization affiliated with the Foundation for Defense of Democracies. It may also take a long time. 'With sanctions legislation, you're also normally dealing with iterative processes where you would want to go through every nook and cranny,' Zweig said. Still, the widespread bipartisan support for the legislation suggests there is a high degree of support among lawmakers for tougher action on Russia. 'What Congress may be doing is pressuring the executive branch to act,' said Adam Smith, a partner at the law firm Gibson Dunn. 'There is a sense in the Senate that more sanctions on Russia need to be imposed, or ought to be imposed,' added Smith, who was a senior adviser to the Treasury's Office of Foreign Assets Control during the Obama administration. Graham, the bill's most vocal Republican advocate, said as much in a meeting with reporters in Paris over the weekend, where he described the bill as 'one of the most draconian sanctions bills ever written.' 'The Senate is pissed that Russia is playing a game at our expense and the world's expense. And we are willing to do something we haven't been willing to do before — and that is go after people that have been helping Putin,' Graham said. Sen. Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee, dismissed concerns that the bill is too harsh. 'We need to make Putin understand he has to stop screwing around and come to the table. But we also need to follow it up and make clear we will be tough,' she said. Not everyone agrees. Sen. Rand Paul (R-Ky.), who has long been skeptical about the effectiveness of sanctions to change the behavior of U.S. adversaries, bashed the bill on Monday as 'literally the most ill-conceived bill I've ever seen in Washington,' he said. 'It would be a worldwide embargo on 36 countries.' Meanwhile, Russia and Ukraine have made little progress on peace talks. Officials from both countries met in Istanbul on Monday and agreed to a further prisoner swap, but failed to achieve any major breakthroughs. Graham and Blumenthal visited Ukraine, France and Germany during last week's congressional recess, where they discussed the sanctions bill, as well as efforts to push Russia to the negotiating table. The proposal has been welcomed by European Commission President Ursula Von der Leyen, who met with Graham in Berlin on Monday. 'Pressure works, as the Kremlin understands nothing else,' Von der Leyen said in a statement. 'These steps, taken together with U.S. measures, would sharply increase the joint impact of our sanctions.' Senate Majority Leader John Thune indicated Monday that the chamber could take up the legislation later this month. Republican senators have said they would like to secure the approval of the White House before moving forward. The proposed use of blanket tariffs to target countries that continue to do business with Russia's energy sector is novel and appears to be pitched to Trump's interests. On Tuesday, White House press secretary Karoline Leavitt said Trump viewed sanctions as 'a tool in his toolbox,' but declined to comment about his position on the bill. Trump appeared to be inching closer toward supporting the bill in a post on Truth Social on Wednesday, which linked to an op-ed in The Washington Post supporting the legislation. Speaking in the Oval Office on Thursday, Trump indicated he wanted lawmakers to secure his approval before moving forward with the bill. 'They're waiting for me to decide on what to do,' he said, describing the legislation as a 'harsh bill.' The president has liberally wielded tariffs to advance his foreign policy agenda, but his implementation has been spotty. Wall Street has even adopted a trading strategy referencing Trump's capriciousness called TACO, which stands for 'Trump Always Chickens Out.' Tariffs of 145 percent on China, imposed in April, lasted a month before being dramatically scaled back to make way for trade talks, which have so far failed to secure a breakthrough. As it stands, the bill includes some levers that Trump could pull to forestall the tariffs, requiring the president to make a formal determination that Russia is refusing to negotiate or has violated any future peace agreement. Nahal Toosi, Joshua Berlinger, Phelim Kine and Katherine Tully-McManus contributed to this report.
Yahoo
12 hours ago
- Yahoo
White House tries to water down Russia sanctions
Donald Trump is pressuring a US senator to weaken a Bill that would impose sweeping sanctions on Russia. White House officials hoping to mend relations with Moscow have been quietly contacting senator Lindsey Graham's office urging him to water down his Bill, which aims to cripple Vladimir Putin with huge sanctions. The Bill, backed by nearly the entire Senate, would impose 500 per cent tariffs on countries that continue to buy Russian oil and gas, which bankrolls Putin's war effort. Officials have been demanding the Bill include waivers that would allow Mr Trump to choose who or what was sanctioned, congressional aides told the Wall Street Journal. Other attempts to weaken the legislation include softening the language, replacing 'shall' with 'may' to avoid making the reprimands mandatory. Removing the mandatory nature of the sanctions would render the Bill effectively toothless and do little to hamper Putin's war machine, aides fear. 'We're moving ahead and the White House is included in our conversations,' Richard Blumenthal, senator and lead Democratic co-sponsor of the Bill, told the paper. Russia's war effort is funded by fossil-fuel exports. Moscow has adapted to existing sanctions with relative ease, turning to North Korea and China for support. Fearing the impact on pump prices, Joe Biden, former president, was unwilling to crack down on Russian energy exports. Mr Trump, has threatened to impose sanctions on Ukraine, as well as Russia, if the two sides fail to reach a peace agreement. 'Any sanction package must provide complete flexibility for the president to continue to pursue his desired foreign policy,' a White House official said. They added that the constitution 'vests the president with the authority to conduct diplomacy with foreign nations'. Speaking in the Oval Office alongside Friedrich Merz, German chancellor, on Thursday, the US president said that the Bill should not move forward without his express approval. 'They'll be guided by me. That's how it's supposed to be,' he told reporters. 'They're waiting for me to decide on what to do.' Last week, Mr Graham and Mr Blumenthal visited Ukraine where they applauded the country's drone attack that destroyed 40 aircraft deep inside Russian territory. However, they were ridiculed and accused of 'stirring up' the conflict by key allies of Mr Trump, including Steve Bannon. 'By trying to engage Putin – by being friendly and enticing – it's become painfully clear [Putin's] not interested in ending this war,' Mr Graham said earlier this week. '[Putin] needs to see and hear that message as well from us, from the American people,' said Mr Blumenthal. Both said that failing to act now could pull the US deeper into the conflict later. If Putin isn't stopped in Ukraine, Mr Blumenthal said, Nato treaty obligations could compel US troops into battle. Earlier this week, Russian negotiators tabled a long memorandum, resembling a complete capitulation for Ukraine, in a second round of direct talks with Kyiv in Istanbul. They demanded Ukraine must withdraw its troops from four eastern regions that Russia only partially occupies and that international recognition of Russian sovereignty over them and Crimea must be granted. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
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Russia Offers Elon Musk Asylum as Fight With Trump Intensifies
Russian officials are gleefully offering Elon Musk asylum, a sarcastic gesture meant to sow further discord between the billionaire and President Trump as their alliance implodes. 'Elon @elonmusk, don't be upset! You are respected in Russia. If you encounter insurmountable problems in the US, come to us and become one of us - a 'Bars-Sarmat' fighter. Here you will find reliable comrades and complete freedom of technical creativity,' wrote Dmitry Rogozin, who formerly rivaled Musk as the head of Russia's space agency Roscosmos. 'We will, of course, resolve issues of citizenship and military ID. Please fill out the forms at this link. With respect to you.' Rogozin is now a senator in occupied Ukraine. 'We are ready to facilitate the conclusion of a peace deal between D and E for a reasonable fee and to accept Starlink shares as payment,' former Russian President Dmitry Medvedev wrote on X. 'Don't fight, guys😱!' Musk responded with a laughing emoji. Others noted that Musks's conflict with Trump mirrors the conflicts that President Putin has had with Russian businessmen, particularly Yevgeny Prigozhin, the Wagner Group founder whose plane mysteriously exploded in mid-air in 2023 after he tried to usurp Putin. Musk has also been deeply anti-Ukraine sinceRussia's invasion, another point that will further please the Kremlin.
