President Biden of the United States announced a restriction on Russian energy imports without the assistance of European partners.
Not just Russian oil, but also coal and liquefied natural gas are prohibited.
Russia warned on Monday that a worldwide energy embargo against Moscow would have “catastrophic consequences.”
On Tuesday, the United States announced a restriction on Russian energy imports, with no involvement from Europe’s allies.
The restriction affects not only Russian oil, but also coal and liquefied natural gas (LNG), according to Bloomberg’s sources, who spoke on the condition of anonymity.
“Today, I’m announcing that the United States is attacking Russia’s key economic artery.” We’ve put a moratorium on all Russian oil, gas, and energy imports. That means Russian oil will no longer be accepted at US ports, and the American people will strike back against Putin’s war machine once more,” President Biden stated in a White House statement on Tuesday.
While the decision was reached in close collaboration with European partners, the President acknowledged that not every ally would be able to join the US in restricting Russia’s energy supplies.
States were considering blocking Russian oil imports without the involvement of their European partners, at least as a first step in increasing pressure on Putin’s major source of revenue.
So far, the Western partners have refrained from slapping restrictions on Russia’s energy exports, citing concerns about causing market shortages. In comparison to the United States, Europe is significantly more reliant on Russian oil.
On Monday, Europe, led by German Chancellor Olaf Scholz, stated that it did not support a ban on Russian oil and gas imports.
“At the moment, there is no other option to ensure Europe’s energy supply for heat generation, mobility, power generation, and industry,” Scholz added.
“As a result, it is our deliberate decision to continue doing business with Russian energy,” German Chancellor Angela Merkel stated on Monday.
Meanwhile, Democrats and Republicans in Congress secured a bipartisan agreement on Monday that would pave the way for a ban on energy imports.
Russian Deputy Prime Minister Alexander Novak warned on Monday that an energy embargo on Moscow would have “catastrophic consequences for the world economy,” saying that if Western allies shut off Russian oil, prices might rise to $300 a barrel or even higher.
Unlike Europe, which imports about 500,000 bpd of Russian crude and goods, the United States can afford to prohibit Russian imports without serious implications to its industry and economy.
