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US President Joe Biden announced on Tuesday a total ban on imports of oil, natural gas and coal from Russia as a sanction for Putin’s invasion of Ukraine.
In a television appearance, Biden reported that he is taking the measure to cause more “pain to the war machine” of Russia.
“That means Russian oil will no longer be accepted at American ports and the American people will deal another mighty blow to Putin,” he said.
The White House reported that the executive order, effective immediately, was signed by the president after his speech.
United States is the first country to announce sanctions against the Russian energy sector and it took the step unilaterally, without its European allies, which are far more dependent on Russian oil and gas for their energy needs.
However, Biden said the move was made in “close consultation” with allies.
Britain also announced Tuesday that it will phase out “the import of Russian oil and oil products by the end of 2022.”
“This transition will give the market, businesses and supply chains more than enough time to replace Russian imports, which account for 8% of UK demand,” British Business and Energy Secretary Kwasi said on Twitter. Kwarteng.
The official added that the government will work with British companies to support them in finding alternative supplies.
The European Union (EU) announced on Tuesday that it plans cut Russian gas imports by two-thirds by the end of this year and cut its dependence on it permanently by 2030.
US imports from Russia make up a small portion of its energy consumption, just 8% in 2021, according to official figures.
Of this amount, only about 3% was crude oil.
The EU, for its part, gets about 40% of its gas and 30% of its oil from Russia, and has no easy substitutes if supplies are disrupted.
Russia earlier warned that it could shut down its main gas pipeline to Germany if the West banned Russian oil.
At the beginning of the invasion, Berlin announced that it was canceling the Nord Stream 2 gas pipeline, a multimillion-dollar project that connects Germany with Russia without the need to cross through Ukraine.
Moscow is the second largest exporter of natural gas and the third largest exporter of oil in the world, so any sanctions against its energy industry are seen as a serious blow to its economy.
However, the measure also risks triggering oil prices and Biden himself acknowledged this during his appearance.
image source, PA Media
“Today’s decision is not gratuitous for us here at home. Putin’s war is already hurting American families at the gas pump. Ever since Putin began his military buildup on the Ukrainian border, just since then, the The price of gasoline in the United States rose 75 cents. With this action it will rise even more,” he said.
Brent crude was around US$130 a barrel on Tuesday, its highest level in almost 14 yearswhile the average price of gasoline in the US reached US$4.17 a gallon, the highest in its history.
Biden also addressed US oil and gas companies to alert them that the war and its impacts “are no excuse for excessive price increases,” adding that he will not tolerate it. “Russia’s aggression is costing us all. And this is not the time to speculate or increase prices. I want to be clear that we will not tolerate it,” he stressed. However, he also acknowledged companies that are “leading by example” by withdrawing from Russia. “This is a time when we have to do our part,” he said.
This Tuesday, Shell announced that it was stopping its operations on Russian territory.
Looking for alternatives
During his speech, Biden hinted that he doubts whether the sanctions will be able to stop the Russian president.
“Putin seems determined to continue his murderous path no matter what the cost,” he said, stressing the courage of the Ukrainians in the face of invasion. “It will be a victory for Putin. Putin can take a city, but he can never control the country. And if we don’t respond to Putin’s assault on world peace and stability today, the cost to freedom and the American people will be even greater tomorrow.” , said.
Washington has been working for days on mechanisms to cut off Russian oil imports without causing major problems in the economy, given the increase in gasoline prices.
The White House confirmed that a group of officials traveled to Caracas over the weekend to meet with members of the government of Nicolás Maduro to discuss “energy issues” in the context of the invasion of Ukraine.
Hundreds of people have died and more than 2 million have taken refuge in neighboring countries since the beginning of the Russian invasion of Ukraine on February 24.
The US and European nations have imposed numerous sanctions on Moscow since the attacks began, but had been more reluctant to sanctions on the energy sector, given Europe’s dependence on the Russian market.
US media have pointed out that Biden may ask Saudi Arabia to increase its production and also reach a potential agreement with Iran.
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