Washington’s involvement may also help mitigate political opposition in Europe, while giving the U.S. strategic visibility over future Russian energy flows, sources told Reuters.
The agreement, signed on April 30, establishes a joint investment fund between Kyiv and Washington and grants the U.S. special access to projects developing Ukraine's natural resources.
Ukraine is considering moving away from the U.S. dollar and closer to the euro as a benchmark for the hryvnia, National Bank Governor Andrii Pyshnyi told Reuters.
Illustrative image of a tanker transiting through the Great Belt of Denmark off the coast of Agerso, Denmark, on Thursday, Aug. 15. 2024. (Carsten Snejbjerg/Bloomberg via Getty Images)
The Biden administration is considering implementing new, harsher Russian oil sanctions ahead of the inauguration of U.S. President-elect Donald Trump, Bloomberg reported on Dec. 10, citing its sources.
Oil revenues are a crucial source of funding for Russia's war machine, and have been repeatedly targeted by Western sanctions since the start of full-scale invasion of Ukraine.
Although no concrete decisions have been made on the potential sanctions, sources familiar with the discussions told Bloomberg that a number of avenues are being explored, including sanctions on Russia's so-called 'shadow fleet.'
The additional sanctions, targeting Russian oil tankers that carry billions of dollars worth of oil and oil products, may be unveiled in the coming weeks, the sources said.
The new sanctions are expected to be announced ahead of the January presidential inauguration, amid uncertainty over a future Trump administration's handling of peace negotiations.
While Trump has pledged to get the U.S. "out" of Russia's war and negotiate a quick peace deal, Ukrainian officials have urged the president-elect to maintain support and adopt a "peace through strength" approach in dealings with Russia.
As the White House prepares for a transition and President Joe Biden's influence diminishes in the lead-up to the inauguration, the new sanctions are under consideration amid declining oil prices, according to sources cited by Bloomberg.
Following the U.S. presidential election, Biden has continued to implement hardline foreign policy decisions much to the detriment of Russia, including authorizing Ukraine to use U.S.-supplied long-range ATACMS missiles for strikes inside Russia
On Nov. 21, the Biden administration imposed harsher sanctions on dozens of Russian banks, including Gazprombank, Russia's main conduit for energy-related payments — sinking the Russian ruble to levels it has not seen since March 2022, following the full-scale invasion.
The decisions to sanction Gazprombank stirred blowback from some Western allies, namely Hungary and Turkey — with officials fearing that similar strict future sanctions may drive up oil prices.
The latest discussions on additional sanctions comes the Biden administration rushes to deliver the remaining approximately $5 billion in military aid to Ukraine ahead of the inauguration of President-elect Donald Trump, amid concerns that a future Trump administration would halt weapons shipments before they reach Kyiv.
Two administration officials told Politico on Nov. 6 that the White House plans to expedite the weapons delivery ahead of the January inauguration, as Trump has previously said he would cease military aid to Ukraine unless it agrees to hold peace negotiations with Russia.
Dmytro Basmat is a senior news editor for The Kyiv Independent. He previously worked in Canadian politics as a communications lead and spokesperson for a national political party, and as a communications assistant for a Canadian Member of Parliament. Basmat has a Master's degree in Political Management from Carleton University in Ottawa, Canada, and a Bachelor of Arts in Politics and Governance from Toronto Metropolitan University.
Dmytro Basmat
