The United States and its allies are preparing a new round of sanctions, this time looking to cap the sales prices of Russian exports of refined petroleum products, the Wall Street Journal reported, citing two unnamed people familiar with the matter.
According to the people who spoke with the WSJ, the sanctions will set a price limit on diesel and fuel oil and are set to go into effect on Feb. 5.
This fresh round of sanctions follow a decision last month by the U.S., EU and other Group of Seven countries to cap the price of Russian crude exports at $60 a barrel.
Ukrainian President Volodymyr Zelensky criticized the price cap as not going far enough in punishing Russia for its war against Ukraine.
According to the WSJ report, the penalties on the two types of refined products could have bigger economic consequences, and market watchers expect Russia will have a more difficult time reorienting its exports of refined products.
The new limits will follow moves last month by the U.S., European Union and their allies in the Group of Seven advanced democracies to cap the price of Russian crude exports at $60 a barrel. Those sanctions have had a relatively muted impact on global prices, encouraging Western officials who want to pressure Russia's budget while minimizing volatility in critical global energy markets.
