Biden said the ban meant that Russian oil would not be accepted at US ports.
In addition to oil, the ban includes gas and other oil products and coal. The White House states that this also applies to new US investments in the Russian energy sector.
“We will increase the pressure on Putin and his war machine,” Biden said of the introduction.
It is the first Western sanctions against Russia to directly affect the country’s largest export, oil and gas.
Biden said previously imposed sanctions have cost the Russian economy.
– The ruble has fallen. We have cut off Russia’s access to technology, which will weaken the military for many years, he said.
says it will cost
It is clear that the import ban will lead to an increase in oil prices. It’s already at $130 a barrel, a 14-year high.
“Putin’s war has already hit us, gas prices have gone up, and with that, they’re going to go up even more,” Biden said.
However, he said there was widespread political support for the import ban.
“It’s going to cost us, and we understand that, both from Republicans and Democrats,” Biden said.
At the same time, the president urged oil companies not to take advantage of the situation to increase revenues.
– Let me say this to the oil companies. “We understand that Putin’s war is costly, but there is no excuse to take advantage of the situation,” Biden said.
3% of imports
according to Al Jazeera Russian oil makes up a small part of the oil imported by the United States.
Last year, the United States imported 209 thousand barrels of oil per day from Russia. This number was the highest in several years, but represented about 3 percent of total imports.
In addition to 209,000 barrels of oil, the United States also imported the equivalent of 500,000 barrels per day of other oil products. In total, Russian oil products account for about 8 percent of total US imports.
The United Kingdom is following suit
Britain is following in the US’s footsteps and will stop buying Russian oil. This applies to both crude oil and other petroleum products.
The British will stop buying during the year, so that the global market does not become too turbulent.
The British government will form a working group to help oil companies find other oil sources.
It is believed that the price of oil could reach 300 dollars
Russian Deputy Prime Minister Alexander Novak said on Monday that an embargo on Russian oil would have serious consequences for the global oil market.
– Novak told Russian news agencies that a price hike would not be expected – more than $300 a barrel, if not more.
Norwegian analyst firm Rystad Energy is not taking it seriously, but on Tuesday said the price could reach $200 a barrel.
At 15.00 on Tuesday, the price of North Sea oil reached $130 a barrel.
The European Union will cut off the need for Russian gas
Unlike the United States, many EU countries rely more on Russian gas for energy supplies. Biden also showed understanding.
Biden said we are moving forward with this knowing that European countries may not have the opportunity to join us on this.
The European Commission on Tuesday presented a plan to make Europe independent of Russian oil and gas by 2030. Two-thirds of the demand for Russian gas will be reduced by the new year.
The plan was launched to ensure cheaper, safer and more sustainable energy for Europe in the precarious security situation after Russia’s invasion of Ukraine – and in the face of climate change.
Energy prices were high even before the start of the war in Ukraine on February 24. After the invasion, oil and gas prices skyrocketed.
The European Commission’s plan, dubbed “REPowerEU”, is mainly aimed at diversifying EU gas purchases, accelerating plans to roll out renewable energy and replacing gas as a fuel for heating and power plants.
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