US weighs sanctions on Russia's shadow fleet, Chinese banks supporting war effort, Reuters says
Washington is considering more sanctions on "shadow fleet" tankers and has not ruled out targeting Chinese banks if they are found to be involved in Russia’s war effort, U.S. Treasury Secretary Janet Yellen told Reuters in an interview on Dec. 13.
The U.S. is weighing additional measures against entities facilitating sanctions evasion in oil trade ahead of the inauguration of U.S. President-elect Donald Trump.
In her interview, Yellen emphasized the Biden administration’s commitment to using sanctions as a critical tool to support Ukraine, signaling that efforts to intensify restrictions will continue until the next administration takes office.
"There are a number of possibilities here… 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," she said.
Regarding Chinese banks, Yellen noted ongoing discussions between U.S. Treasury officials and their Chinese counterparts to identify activities potentially tied to Russia’s war effort.
"I absolutely would not rule out the possibility we would sanction an individual bank if we had the necessary level of… evidence to be able to put sanctions on," she said. "But we also do have a channel where we've been able to discuss specific concerns, and sometimes that could be adequate as well."
As Russia’s economy increasingly shifts toward military spending, the distinction between commercial activities and those supporting the war effort has blurred.
Yellen pointed out that Chinese authorities are keenly aware of the risks posed by potential U.S. sanctions. "Authorities in China recognize that our use of these sanctions would be a serious threat with very adverse consequences," she said. "They want to trade with Russia, but they do not want their banks sanctioned."
Other Ukraine allies have also taken steps to target sanctions evasion networks.
In September, the U.K. sanctioned 10 tankers from Russia’s "shadow fleet," vessels linked to illicit oil trades supporting Moscow’s war efforts. In November, it targeted 30 more.
On Dec. 11, European Union ambassadors agreed on a 15th sanctions package against Russia, specifically focusing on the "shadow fleet."
Mykola Kolisnyk
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