Biden bans imports of oil and natural gas from Russia
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US President Joe Biden announced on Tuesday a complete and immediate ban on imports of oil, natural gas and coal from Russia as a sanction for Putin's invasion of Ukraine. However, this measure also risks provoking an increase in oil prices, as Biden himself acknowledged.
US President Joe Biden announced last Tuesday a ban on oil and natural gas imports from Russia. This is the administration's latest move against Russia after that country's invasion of Ukraine.
“The Americans have come out in support of the Ukrainian people and have made it clear that we will not participate in subsidizing Putin’s war,” Biden said during a White House speech, referring to Russian President Vladimir Putin. “This is a move we are taking to inflict even more pain on Putin, but here in the United States it will come at a cost,” the post reads.
Goodbye Russian oil and gas imports
The President will sign a decree banning the import of Russian oil, liquefied natural gas and coal. Russia is one of the world's largest oil producers and exporters, but accounts for only about 8% of US imports.
Europe can also reduce the consumption of Russian resources.
So far, Russian oil and gas has largely escaped US and European sanctions. Biden said European allies are also working on strategies to reduce reliance on Russian energy, but acknowledged they may not be able to join the US ban. Russia provides about 30% of crude oil supplies to the European Union and almost 40% of gasoline.
The UK will also ban Russian imports
The UK is reportedly phasing out all oil imports from Russia in the coming months. The UK ban will not apply to Russian gas, according to Bloomberg. The European Commission on Tuesday outlined a plan to reduce Europe's dependence on fossil fuels from Russia "well before" 2030.
The price of oil has skyrocketed since the Russian invasion of Ukraine, driving up fuel costs. Biden said a Russian energy ban would drive up prices, but noted that the administration is taking steps to address the problem, including releasing 60 million barrels of oil from joint reserves with partners.
Biden urged not to raise oil and gas prices
Biden also warned oil and gas companies not to take advantage of the "excessive price rise" situation. The administration stressed that federal policy does not restrict oil and gas production and said major energy companies have the "resources and incentives they need" to boost U.S. production, according to the White House.
Russia invaded Ukraine on February 24 in what Biden called a "brutal attack." The US, EU and UK have imposed economic sanctions on Russia, including those directed directly at Putin. According to a UN official, more than 2 million refugees left Ukraine because of the war.
Biden said the United States has already provided more than $12 billion in security assistance to Ukraine, as well as humanitarian support for people in the country and those who have fled. Biden called on Congress to pass a billion-dollar relief package to continue support and assistance.
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