WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen told Reuters on Friday that the U.S. is looking at further sanctions on “dark fleet” tankers and will not rule out sanctions on Chinese banks as it seeks to reduce Russia’s oil revenue and access to foreign supplies to fuel its war in Ukraine.
Yellen said in an interview that the U.S. and its allies also could consider lowering their $60-per-barrel oil price cap on Russian oil, which prohibits Western insurance and maritime services on cargoes above that level.
The Treasury has already sanctioned individual tankers and their owners for operating above the price cap and can do more in this area, Yellen added, suggesting additional measures in the five weeks before she leaves office.
“There are a number of possibilities here. We don’t preview sanctions, but we’re always looking at oil revenues and if we can find ways to further impair Russian oil revenues, that would, I think, strengthen Ukraine’s hand. That remains on our list,” Yellen said.
Earlier this week, Yellen said softness in the oil market presents an opportunity for more sanctions. Benchmark Brent crude traded at $74.50 per barrel on Friday, down from $85.57 when the $60 cap was set in December 2022.
President Joe Biden’s administration has been racing to shore up support for Ukraine before President-elect Donald Trump takes office on Jan. 20, given the Republican leader’s frequent complaints about the cost of U.S. support for Ukraine.
