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The United States on Tuesday announced a ban on Russian oil and other energy imports, in what can be seen as a highly symbolic move to punish Moscow over its invasion of Ukraine but which could risk driving crude prices higher amid concerns over supply disruptions.
Britain also said the same day it will phase out imports of Russian oil by the end of the year, while the European Union, which relies more heavily on Russian energy resources, unveiled a plan to eventually become independent from Russian fossil fuels.
While the United States is not a major importer of Russian oil, President Joe Biden said his country will not be immune from the impact of its own import ban against Russia — one of the world’s largest oil producers — but emphasized that standing up for Ukraine is worth the risk.
U.S. President Joe Biden delivers his first State of the Union address to a joint session of Congress at the U.S. Capitol in Washington on March 1, 2022. (UPI/Kyodo)
“Defending freedom is going to cost — it’s going to cost us as well, in the United States,” Biden said at the White House, adding, “If we do not respond to (Russian President Vladimir) Putin’s assault on global peace and stability today, the cost of freedom and to the American people will be even greater tomorrow.”
The ban will take effect immediately and will also apply to the importation of certain petroleum products, liquefied natural gas and coal, according to a senior Biden administration official.
The ban is likely to push up gas prices in the United States amid already rising inflation, but Biden vowed to minimize the price hike at home. The White House said the move is expected to deprive Russia of “billions of dollars in revenues” from U.S. consumers and drivers annually.
Biden said he understands many European countries may not be in a position to join the U.S. action, apparently due to their higher energy reliance on Russia, but emphasized that the United States and its allies remain “united” in their bid to keep pressuring Putin.
In 2021, Russian oil accounted for just under 10 percent of overall U.S. imports of oil, but made up a third of Europe’s imports, according to the official.
The British government said its planned phase-out of Russian oil imports will not be immediate, but instead allows the country “more than enough time” for the market and supply chains to adjust to the changes. Russian imports account for 8 percent of Britain’s total oil demand, according to the government.
The European Union, meanwhile, proposed plans on Tuesday to cut its dependency on Russian gas by two-thirds before the end of 2022 and to become independent from Russian fossil fuels “well before 2030” in light of Russia’s invasion of Ukraine.
The EU imports 90 percent of the gas it consumes, with Russia providing around 45 percent of those imports, in varying levels across member states. Russia also accounts for around 25 percent of the bloc’s oil imports and 45 percent of its coal imports, according to a press release from the European Commission.
The United States, the EU and countries around the world, including Japan, have rolled out economic sanctions in response to Russia’s military attack against Ukraine.
The invasion has continued for more than a week, resulting in civilian casualties and driving some 2 million refugees from Ukraine.
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