Two sources familiar with the situation said that on Sunday, the Biden administration intends to increase sanctions against Russia for its war in Ukraine. They will target its oil revenues by targeting tankers transporting Russian crude.

The administration of President Joe Biden has been trying to shore up the support for Ukraine in the run-up to Donald Trump's inauguration on January 20. This is because the Republican leader frequently complains about the costs associated with U.S. assistance for Ukraine.

Trump has not yet made clear his approach to the sanctions against Russia.

Sources claim that the Biden administration plans to sanction tankers carrying Russian oil above the $60 barrel price cap in the West. Russia has been using this shadow fleet to avoid the cap. Shipping experts claim that many of these ships are not as safe and more prone to spilling fuel.

The U.S. sanctioned these vessels in order to limit Russia's ability to finance the invasion.

The cap has caused Russia to redirect their oil sales to China, and India. Both countries are willing to buy Russian crude at a discounted price, even if it is sold above the cap.

One of the sources stated that "it will be a huge package." One source stated that the sanctions will likely also include measures against those involved in certain networks trading oil over the price cap.

Last month, U.S. Treasury secretary Janet Yellen said that the U.S. was looking at additional sanctions on tankers and would also not rule out sanctioning Chinese banks in order to reduce Russia's revenue from oil and its access to foreign supply to fuel the war in Ukraine.

On Sunday, the Treasury's Office of Foreign Assets Control failed to respond immediately to a comment request.

The G7, EU, and Australia set a $60 cap for Russian oil by the end of 2022. This bans the use of Western services like transport, insurance, and financing to ship oil that is priced above or at the cap.

Russia is one of the top three oil-producing countries in the world. (Reporting and editing by Christian Schmollinger; Nidhi verma and Timothy Gardner)

(source: Reuters)