US announces sanctions on ‘all Russian oil, gas and energy’ imports over Ukraine invasion

Washington: President Joe Biden on Tuesday announced a ban on US imports of “all Russian oil, gas and energy” in the administration’s most far-reaching action to punish Moscow for attacking Ukraine.

“We are banning all imports of Russian oil and gas and energy. This means that Russian oil will no longer be acceptable at American ports and another powerful blow to the American people (President Vladimir) Putin,” Biden said in an address. Will give.” The White House said the decision was taken “in close consultation” with aides.

The move follows pleas by Ukraine’s President Volodymyr Zelensky to cut imports from the US and Western officials, an apparent lapse in major sanctions imposed on Russia over the invasion.

“We are proceeding with this embargo, recognizing that many of our European allies and partners may not be in a position to join us,” US President Joe Biden said in a televised address. Implementing the package are sanctions in history, and it is causing significant damage to Russia’s economy.”

Energy exports have maintained a steady flow of cash flows into Russia, despite severe restrictions on its financial sector. The White House previously indicated that Biden would “announce to continue taking actions to hold Russia accountable for its unprovoked and unjustified war on Ukraine.” The US will act alone, but in close consultation with European allies, which are more dependent on Russian energy supplies.

European nations have said they plan to reduce their dependence on Russia for their energy needs, but it may take some time to fill the void without crippling their economies. Natural gas from Russia accounts for a third of Europe’s fossil fuel consumption. The US does not import Russian natural gas.

Biden explained his reluctance to impose energy restrictions at the start of the conflict two weeks ago, saying he was trying to “limit the pain the American people are feeling at the gas pump.” Gas prices have been rising for weeks due to the conflict and in anticipation of possible sanctions on the Russian energy sector.

The US national average for a gallon of gasoline rose 45 cents a gallon over the past week to reach US$4.06 on Monday, according to Auto Club AAA. According to Rystad Energy, the United States typically imports about 100,000 barrels a day from Russia, which is only 5 percent of Russia’s crude exports. Last year, about 8 percent of US imports of oil and petroleum products came from Russia.

Even before the US embargo, several Western energy companies, including ExxonMobil and BP, proceeded to cut ties with Russia and limit imports. Shell, which bought a shipment of Russian oil this weekend, apologized for the move on Tuesday amid international criticism and promised to halt purchases of Russian energy supplies. Preliminary data from the US Department of Energy showed Russian crude imports fell to zero in the last week in February.

“This is an important step in showing Russia that energy is on the table,” said Max Bergman, a former State Department official who is a senior fellow at the Democratic-leaning Center for American Progress.

Before the invasion, Russian oil and gas made up more than a third of government revenue. Global energy prices have risen since the invasion and continue to rise despite coordinated releases of strategic reserves making Russian exports even more attractive.

As a result of Russia’s invasion of Ukraine, the US and international partners have sanctioned Russia’s largest banks, its central bank and the Ministry of Finance, and moved some financial institutions to block the SWIFT messaging system for international payments. Have given.

But rules issued by the Treasury Department allow Russian energy transactions to continue through non-sanctioned banks that are not based in the US in an effort to minimize any disruption to global energy markets. Biden in particular highlighted those Russian energy carvings as a virtue because they would help protect American families and businesses from high prices.

Biden’s actions are unlikely to affect the energy payments of other countries to Russia. Inflation, fueled in large part by a 40-year peak and gas prices, have hurt Biden politically with voters in November’s election.

The sanctions closed a potential trade-off for the president between his political interests at home and abroad. By attacking Ukraine, Russia has potentially fed into supply chain problems and inflation that has been a key weakness for Biden, who is now trying to strike a balance between punishing Putin and sparing American voters. .

While Russian oil makes up a small amount of overall US energy imports, the US could replace Russian crude with imports from other oil-rich countries, but this could prove politically problematic. Prominent US senators have been warning the Biden administration from seeking any oil import deals from the Nicolas Maduro regime in Venezuela.

(with Reuters input)

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