US President Joe Biden declared the ban on the United States imports of Russian oil. It is the latest attempt to reduce foreign revenue as punishment after the invasion of Ukraine. Joe Biden will be on Monday in a video conference with European allies.
President Joe Biden stated at the White House, “Today, I am declaring that the US targets Russia’s main artery.” He also says, “We are banning all Russian gas, energy, and oil imports. It means that Russian oil will not be accepted at the United States ports and the American people will strike another blow to the Vladimir Putin’s war machine.”
On Sunday, the Biden administration appeared not in favor of a move Russia critics claim is the best and perhaps the only way to force Moscow to withdraw.
On Tuesday, Joe Biden, American president, noted that the Russian oil ban has attracted “strong bipartisan backing” in Congress.
According to the US Energy Information Administration, Russian oil accounted for about 3% of crude oil shipments to the US over the last year. Generally, around 8% of US oil imports came from Russia, including petroleum products and Russian oil.
European countries rely more on Russian natural gas and oil than the United States, so Joe Biden stated that America’s allies would likely be unable to issue an import ban. He also says, “We are moving forward in this ban, understanding that many European Partners may not be able to join us.”
“We can take this step when others would not, but we are working closely with Europe to develop a long-term strategy for reducing their dependence on Russian energy.” One-third of European natural gas consumption comes from Russia. The United States does not import Russian natural gas.
Capital Economics chief commodities economist Caroline Bain stated that “Although it is not likely to have a significant impact on the American market, it is a big statement and will put pressure on more significant consumers, such as the European Union.
“The European Union is likely to take a more thoughtful approach and not announce an absolute ban, but instead looks at ways to decrease its dependence on Russian energy.”
Despite American President Joe Biden’s executive action, Steny Hoyer, Majority Leader of the United States House of Representatives, states that the House would vote on legislation banning Russian oil imports and other related matters. It was part of what he described as a joint effort by Congress and the administration “to impose the most severe consequences on Russian criminal behavior.”
The Democrat stated that there is general agreement that we need to take additional actions, and I think you would find that both parties would overwhelmingly pass the decision to stop buying Russian oil and other energy products.”
Hoyer stated that other legislation is under consideration. It would allow Biden to suspend normal trade relations with Moscow and will enable him to levy tariffs on products from Russia or Belarus.
On Tuesday afternoon in Fort Worth, Texas, President Biden was to address military veterans. Reporters asked him as he disembarked Air Force One if there was anything he could share with the American people about gas prices. Biden stated, “They are going up.” When Joe Biden was asked to follow up, he replied: “Cannot do much right now… Russia is responsible.”
President Joe Biden’s decision came after Volodymyr Zelensky (the Ukrainian president) pleaded for the suspension of imports. It was an apparent omission from the massive sanctions imposed on the country following the invasion. Despite severe restrictions in its financial sector, Russia has continued receiving cash through its energy exports.
Joe Biden explained that he hesitated to impose energy sanctions when the conflict began two weeks ago. He said he was trying to “limit the pain the American people feel at the gas pump.”
Biden stated that his administration would take additional steps to minimize the financial impact of Vladimir Putin’s price rise on American families. He acknowledged that US gas prices would continue to rise due to the Russian oil ban on Tuesday. To lower oil prices, the United States and its allies have released 60 million barrels of oil from their strategic reserves.
Biden stated, “This is a step that we are taking to inflict further pain on Vladimir Putin; there will be costs here in the US. The Democrats and Republicans understand this. Both have been clear that this is what we must do.
The US and its international partners have placed sanctions on Russia’s biggest banks, central bank, and finance ministry. They also blocked certain financial institutions from accessing the Swift messaging system for the international payment.
To minimize disruptions to global energy markets, the US Treasury Department issued rules that allowed Russian energy transactions to be made through banks that the United States did not sanction.
American president Joe Biden has previously highlighted Russian energy carte-outs to protect American families and businesses. In the midterm elections, Joe Biden’s political position has been hurt by inflation, which is at its highest point in 40 years and mainly fuelled through gas prices. The invasion of Ukraine could worsen inflation and supply chain problems.
The US could reduce the exports of the second-largest oil exporter and the largest natural gas exporter globally, which would be a blow to the unity that US officials state is crucial for confronting Putin. Analysts believe that US-Saudi relations will influence the outcome of efforts for oil supply stability.
David Rundel, an ex-US diplomat and now analyst at Arabia Analytica stated that “Russian and Saudi Arabia are two of the largest oil exporters in the world.”
“If we had good relations to Saudi Arabia, they would have offered their assistance as they have done so many times before. Our relationship with Saudi leaders continues its decline. Get ready to pay $6 per gallon.”
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