US President Joe Biden on Tuesday imposed sanctions on Russian oil and other energy imports in retaliation for an invasion of Ukraine, underscoring strong bipartisan support for a move he acknowledged would raise US energy prices.
“We are banning all imports of Russian oil and gas energy,” Biden told reporters at the White House. “It means that Russian oil will no longer be acceptable in American ports and the American people will deal another powerful blow to Putin’s war machine.”
Biden voiced America’s support for the people of Ukraine and predicted their eventual victory. “Russia may continue to grind its progress at a terrible cost, but it is already clear: Ukraine will never be a victory for Putin. Putin may be able to take a city, but he will never be able to capture the country. I won’t be able to,” she said.
Oil prices climbed 5.4% to $129.91 a barrel by 1345 GMT, with benchmark Brent crude LCOc1 for May.
It was not immediately clear when the import ban would take effect.
Biden is working with Russia’s energy-heavy economy and allies in Europe to isolate Putin, who is far more dependent on Russian oil. Britain announced shortly before Biden’s remarks that it would end imports of Russian oil and oil products by the end of 2022.
Biden said sanctions imposed by the United States and its allies have already “crashed” the Russian economy. He added that the latest steps have been taken in close consultation with allies and partners around the world.
Democrats face Congressional midterm elections in November, when Biden’s handling of the economy and especially rising prices are expected to be a core issue with voters.
US crude imports
According to the Energy Information Administration, the United States imported an average of 20.4 million barrels of crude and refined products a month from Russia in 2021, about 8% of US liquid fuel imports, and the embargo is already expected to send gasoline prices higher. and inflation is increasing. The United States also imports coal from Russia in negligible quantities.
Retail gasoline prices in the United States rose to an all-time record on Tuesday, and prices are expected to continue rising as the United States moves to impose sanctions on Russian oil imports. According to the American Automobile Association, the average cost of a retail gallon of gasoline rose to $4.173 early Tuesday.
Biden predicted that prices would rise further as a result of the “Putin’s War”, but pledged to do everything he could to reduce the impact on the American people. He also warned US companies against profiteering or taking advantage of the situation to engage in price fixing.
Biden said, “Today’s verdict is not without cost here at home. Putin’s fight is already hurting American families at the gas pump. I’m here at home to do everything to reduce Putin’s price hike.” I’m going to do it.”
“Russia’s aggression is costing us all. This is not the time for profiteering,” the Democratic president said.
In November, Biden cited mounting evidence of anti-consumer behavior by oil and gas companies and asked the Federal Trade Commission to dig deeper into potential “illegal conduct” in the market.
Biden pushed back against Republican allegations that his administration’s policies were stifling US energy production, noting that oil and gas firms had 9,000 permits to drill on the coast they were not using.
“We are reaching record (levels) of oil and gas production in the United States and we are on track to set a record level of production next year.”
US Senator Chris Koons said the administration is coordinating with European allies “and making sure we have laid the groundwork to understand how to effectively implement the sanctions on Russian energy.”
“We’re going to see a rise in gas prices here in the United States. In Europe, they’ll see a dramatic increase in prices. It’s a cost to stand up for independence and stand with the Ukrainian people, but it’s going to cost us.” is,” said Koons CNN.
The White House was coordinating with US congressional leaders working on a fast-tracking bipartisan law to ban Russian imports, but the ban announced by Biden on Tuesday would make any such bill controversial.
Biden said the crisis highlighted the importance of transitioning to a clean energy supply.
Republican lawmakers welcomed the decision on social media, while criticizing Biden’s green energy policies, and urging the administration to support more oil and gas production at home.
US Representative Susan Wilde said Americans should realize the need for a greater sacrifice. “Obviously no one wants to pay more for gas,” Wilde, a Democrat on the House of Representatives Foreign Affairs Committee, said on MSNBC.
Announcing that it was ending imports of Russian oil and oil products by the end of 2022, Britain said it was giving markets and businesses enough time to find alternatives to imports, which account for 8% of demand. Is part of.
“The government will work with companies, through a new taskforce on oil, to use this period in finding alternative supplies,” said British Trade and Energy Secretary Quasi Quarteng.
Published on
March 09, 2022