On Tuesday, President Joe Biden struck at the heart of the Russian economy as he said that he would ban the import of Russian oil and gas. This move comes as Russia continues to attack Ukraine, following moves to cripple Russian banks as well as its oligarchs. The ban also includes liquified natural gas (LNG), other oil products and coal.
Biden said that the nation was targeting “the main artery” of the Russian economy. By refusing to accept Russian oil at U.S. ports, the nation had dealt “another powerful blow to Putin’s war machine.” New purchases will stop immediately. However, U.S. companies, who have existing contracts, have 45 days to wind down deliveries of Russian oil and gas imports.
Biden said that his administration had made the decision after consultations with its close allies as well as partners in Europe. He added that there were allies who might not be “in a position to join them.” The U.K. spoke of phasing out oil and gas from the country by the end of 2022. However, the European Union is more reliant on Russian oil and gas imports and would not join the U.S. and the U.K. in the ban of energy from Russia.
Biden also said that defending freedom had a cost and this cost would apply to the citizens in the nation as well. However, he promised to do “everything” that he could to minimize oil and gas costs in the country. He also said that decision had costs and that “Putin’s war” was “already hurting American families at the gas pump.”
Biden mentioned that removing environmental regulations are not the way forward to boost domestic energy production. He said that oil and gas companies have leases for millions of acres of land in the U.S. They had also received permits to drill but had not used them for production.
Although oil and gas has been released from National Strategic Reserves, oil and gas prices continue to rise and could reach all time high levels. The Biden administration is in talks with officials from Venezuela and has asked Saudi Arabia to ramp up its oil production. Qatar is also mediating between the U.S. and Iran regarding the sanctions imposed earlier, on the country. If they reach a breakthrough there could be an easing in the oil crisis as thousands of barrels will be added from Iran to the world’s supplies.
