Last year Russia was the third most important country for US imports of crude oil and petroleum products.
(Photo: Reuters)
Houston, Dusseldorf US President Joe Biden announced an import ban on Russian oil on Tuesday. With this step, unlike the previous sanctions, the USA decided to go it alone. This is also due to the fact that the dependency on Russian oil and gas supplies is significantly lower than in Europe.
“This means that Russian oil will no longer be accepted in US ports and the Americans will deal another serious blow to Putin’s war machine,” Biden said at a short notice Tuesday at the White House. It was initially unclear when the import ban would apply.
Biden said the measure was coordinated with European allies. But we know “that many of our European allies and partners may not be able to join us,” he added. “So we can take that step when others can’t. But we are working closely with Europe and our partners to develop a long-term strategy that will also reduce their dependence on Russian energy.”
However, Britain announced that it would phase out imports of Russian oil and oil products by the end of the year. By the end of 2022 there is enough time for the market, companies and supply chains to replace Russian imports. Consumers should not feel the change. The government announces a task force that will support companies during the transition period in order, among other things, to find alternative sources of supply.
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Because of the war in Ukraine, the pressure on the US government, including from Congress, had recently grown to add an import ban on Russian oil to the punitive measures already imposed.
Biden is worried about gas prices
The pressure came from both political camps, observed S&P Global senior vice president and energy expert Carlos Pascual at the Ceraweek oil conference in Houston (Texas). “Anyone who doesn’t want to do that is branded as anti-Ukrainian,” says Pascual. The pressure on companies to stop buying Russian oil was high even without today’s boycott decision. “People want to know: which side are you on?”
However, the Biden administration is concerned about gasoline prices, which have been exacerbated by the war. Last Sunday, the national average price for a gallon (almost 3.8 liters) of regular gasoline rose to more than four dollars (3.68 euros) for the first time since 2008.
Last year, according to the US Energy Information Administration (EIA), Russia was the third most important country for US imports of crude oil and petroleum products – behind Canada and Mexico. Imports from Russia, at a volume of 672,000 barrels (159 liters each) per day, accounted for almost eight percent of all US imports in this category. The US is significantly less dependent on Russian energy imports than Europe. Natural gas from Russia is not shipped to the United States.
This is how the Handelsblatt reports on the Ukraine war:
In any case, thanks to the controversial fracking technology, the Americans have changed from being an energy importer to a net exporter of energy in recent years. In the past few weeks, oil companies have ramped up their production significantly. Liquefied natural gas (LNG) plays a particularly important role in supplying Europe. LNG can be delivered to Europe on ships.
The EU Commission is currently discussing an embargo on oil imports with the member states, but is met with some skepticism. Chancellor Olaf Scholz (SPD) speaks of a “conscious decision” not to take this step at the moment.
For Europe, the consequences of a boycott would be far more severe because it gets more than a third of its energy from Russia. Russian Deputy Prime Minister Alexander Novak warned on Monday that oil prices could reach $300 a barrel or more if the US and Europe banned imports from Russia. The consequences for the world market are “catastrophic”, warned the former energy minister of Russia.
With agency material
More: Russia’s economy: The sanctions are hitting the country with full force