WASHINGTON, July 11 — The United States and its allies have imposed multiple rounds of sanctions on Russia’s energy sector since the invasion of Ukraine began on February 24, 2022, according to official records. On March 8, 2022, President Joe Biden announced a ban on US imports of Russian oil, liquefied natural gas, and coal. The European Union followed on June 3, 2022, with a partial embargo on Russian oil, banning seaborne imports of crude oil effective December 5, 2022, and petroleum products effective February 5, 2023.
The G7 and the EU implemented a price cap of $60 per barrel on Russian crude oil on December 5, 2022. A cap of $100 per barrel on premium Russian petroleum products and $45 per barrel on lower-value products took effect on February 5, 2023.
The US Treasury’s Office of Foreign Assets Control has also imposed sanctions on Russian oil companies, including Rosneft and Gazprom Neft, and on tankers transporting Russian oil above the cap. In 2023, the US sanctioned over 100 vessels involved in Russian oil trade.
Trade Policy Shift
The proposed Trump administration tariffs would represent a new approach, using trade policy rather than sanctions to restrict Russian revenue. The European Union has also adopted its 12th package of sanctions against Russia in December 2023, including tighter enforcement of the oil price cap. According to the International Energy Agency, the total value of Russian oil exports fell from $218 billion in 2022 to an estimated $180 billion in 2023 due to these measures.
The sanctions regime has faced persistent challenges. The US Treasury’s Office of Foreign Assets Control has targeted tankers transporting Russian oil above the cap.
The European Union’s 12th package of sanctions in December 2023 specifically aimed to close loopholes in the price cap mechanism. The proposed Trump administration tariffs would represent a departure from the current approach. Instead of sanctioning specific companies or vessels, trade policy tools could apply broader restrictions on Russian energy imports.
What to Watch Next
The effectiveness of any new trade policy measures will depend on enforcement mechanisms and international coordination. The European Union’s continued participation in the price cap regime remains a key variable, as does the response from major oil importers.
