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A top US official has warned that the United States and its allies are prepared to impose sanctions and export controls to counter China-Russia trade due to the ongoing war in Ukraine.

White House Deputy National Security Adviser for International Economics Daleep Singh highlighted the possibility of taking stronger measures to increase Russia’s cost as it uses a shadow fleet (second hand old oil tankers transporting Russian oil to world markets) to circumvent the Group of Seven (G7) countries’ oil price cap. He mentioned that these measures could include expanding the current sanctions language to address financial facilitation, given Russia’s shift towards a wartime economy.

“Of course there are risks involved in mobilizing these assets; the policy is all about tradeoffs,” Singh stated during an event at the Brookings Institution. He emphasized that the sanctions are effective relative to the objectives set.

Singh noted that the upcoming G7 summit in June presents the best opportunity to bridge Ukraine’s financing gap by developing a plan to monetize around $300 billion in frozen Russian assets. While acknowledging the risks, he stressed the necessity of this move. Although there has yet to be a consensus among G7 countries on this issue, the United States is pushing for action due to the deteriorating situation in Ukraine.