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GETX24 US sanctions on Russian oil
US President Joe Biden made the announcement at a news conference at the White House on Tuesday, according to Reuters.
"We are imposing sanctions on Russia for importing all kinds of energy products, including oil and gas," he said.
"This means that US ports will no longer allow Russian oil to enter, and the American people will deal another blow to Putin's war machine."
With Biden's announcement, world oil prices rose 5.4 percent to about 130 a barrel.
Biden is working closely with his European allies on the issue. But it is difficult for Europe to impose sanctions on Russia's oil and gas. Because they are largely dependent on Russian oil and gas.
Shortly before Biden's announcement of the sanctions, the Prime Minister of the United Kingdom announced that his country would gradually reduce its imports of Russian oil and petroleum products by the end of this year.
The United States imported an average of 240,000 barrels of crude oil and refined oil products from Russia each month in 2021, according to the Energy Information Administration. That's 8 percent of the United States' total liquid fuel imports.
The Biden administration's decision could send gas prices skyrocketing in the United States. Even then, his move against Russia has garnered the support of all political parties.
"I think the Putin war is going to push up the price of some things," Biden said. He pledged to work to ensure that its impact on the American people is kept to a minimum.
He warned US gas companies that they would have to pay a "hefty price" if they used the current situation to raise prices in the hope of making more profit.
U.S. Senator Chris Kans said the Biden administration is working with European allies to "ensure that we work at the grassroots level to understand how effectively the sanctions on Russia's energy sector can be implemented."
"Gas prices are going up here in the United States," he told CNN. In Europe, too, prices will rise dramatically. This is the value of standing up for independence and for the people of Ukraine. We also have to pay this price. ”
The European Union, of course, cannot take such drastic measures now as the United States.
Russia threatens to cut off gas if oil is banned
Because they get 40 percent of their gas and 30 percent of their oil from Russia. If this supply is suddenly cut off, it is not possible to supply from any alternative source.
Russia knows that too. So they are threatening the EU with this. It says if the EU imposes sanctions on Russia's oil imports, it will cut off gas supplies there.
"It is impossible for Europe to quickly find an alternative to Russian oil," the Russian deputy prime minister said in a statement on state television.
"It will take a lot of time and it will be much more expensive for consumers in Europe. In the end, they are the ones who will suffer the most. "
Russia is the world's second largest producer of natural gas, the second largest producer of crude oil. If any kind of blockade is imposed on the energy sector, it will severely damage the economy of that country.
The Oxford Institute for Energy Studies reported last week that Russia accounted for 14 percent of the world's oil in 2021. Russia accounts for 60 percent of Russia's total oil exports 35 percent go to Asia
Experts say that Europe is paying Russia Rs 3,260 crore every day to buy oil
Russia accounts for 36 percent of Germany's natural gas imports
In a statement on Monday, German Chancellor Wolf Schultz said Berlin was in favor of tougher sanctions against Moscow. But Russia's energy supply is still "necessary" for everyday life in Europe
"In Europe (without Russia's energy) the energy needed to keep homes warm, in the transport and industrial sectors, and for power generation cannot be found elsewhere at the moment."
European countries have said they want to gradually reduce their dependence on Russia's energy sector. Several Western companies have already decided to withdraw their investments from Russian energy companies and boycott shipping from Russia.
Ukraine has been urging the West to impose such a blockade, but many countries around the world are concerned that such a move would have far-reaching implications for international markets.
At one point on Monday, Brent crude rose to 139 a barrel, the highest in 14 years, amid fears of such a blockade. In the UK, the average price of petrol has reached a record 155 pence per liter.