The Biden administration is taking sanctions against Russia over its invasion of Ukraine a step further by announcing a ban on imports of energy resources from Russia.
The U.S. president will announce the ban in remarks today at 5:45 p.m. Greek time, according to sources familiar with the matter, without the involvement of his European allies.
The ban will include Russian oil, natural gas, and coal, according to reliable sources cited by Bloomberg; the White House has not yet commented on the matter.
The same sources, however, maintain that the decision was made in consultation with European allies, who are more dependent on the U.S. for Russian energy.
So far, Russian gas and oil have largely been exempt from sanctions imposed by the U.S. and European countries due to concerns about the economic impact, especially in Europe, which is more dependent on Russian oil and, in particular, natural gas.
Last month, the Canadian government announced its plans to ban all crude oil imports from Russia. However, this move was largely symbolic, as the country has not imported any crude oil since 2019.
Biden's sudden decision
As recently as yesterday, Monday (March 7), the White House maintained that it had not made any decision regarding a “blockade” of Russia, which—perhaps—explains the sudden decision that appears to have been made by the U.S. president.
“These discussions are ongoing internally and also with our counterparts and partners in Europe and around the world,” said White House Press Secretary Jen Psaki.
“Europe imports far more oil from Russia than the U.S. does. So, obviously, we are also well aware—as we engage in these discussions and make joint decisions with our partners—that there will be differences in our capabilities and potential.”.
Russian oil accounted for approximately 3% of all crude oil shipments that arrived in the U.S. last year, according to data from the U.S. Energy Information Administration. Overall, imports of Russian crude oil and petroleum products accounted for about 8% of the U.S. total. U.S. imports of Russian crude oil in 2022 have fallen to their lowest annual rate since 2017, according to the intelligence firm Kpler.
Futures contracts are falling as the U.S. moves closer to banning oil imports from Russia: Markets are pulling back
While so-called self-imposed sanctions have restricted certain markets for Russian oil, a definitive ban by the U.S. would further tighten the market and increase volatility, causing prices to rise even more.
Moscow is threatening to cut off Nord Stream 1
Russia could not fail to respond to a possible U.S. decision to ban the import of energy resources, with Moscow threatening to cut off natural gas flows to Europe via the Nord Stream 1 pipeline.
Russia's threats come in response to the sanctions imposed over the invasion of Ukraine, a move that could intensify turmoil in energy markets and drive prices even higher.
Russia has the right to take measures that “mirror” the sanctions imposed on it, said Deputy Prime Minister Alexander Novak —who is also in charge of energy affairs—in a televised address late Monday.
He said that no decision has yet been made to suspend operations on Nord Stream 1 and that the pipeline is currently operating “at full capacity.”.
