President Joe Biden announced today that the United States will be banning Russian energy imports in response to the country’s invasion of Ukraine. According to CNN, the President can be quoted as saying, “Today I am announcing the United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas and energy…that means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to Putin’s war machine.”
Sanctions on Russia’s energy industry are an unprecedented move. In the past, the United States and Europe have put off sanctioning Russia’s energy sector due to the impacts it would have on European countries, who hold a significant reliance on Russian energy imports. However, following increasingly vocal bipartisan pressure from Capitol Hill lawmakers, the White House found it fit to make this move. The United Kingdom also announced that it will be gradually phasing out Russian energy imports by the end of 2022. This move comes amidst the backdrop of record high gasoline prices in the United States, with the new national average being $4.14 per gallon, breaking the record of $4.11 per gallon that was set in July 2008. Providing commentary on this, Joe Biden in the announcement on the ban stated, “The decision today is not without cost here at home. Putin’s war is already hurting American families at the gas pump. Since Putin began his military build up at Ukrainian borders, just since then the price of gas at the pump in America went up 75 cents and with this action it’s going to go up further. I’m going to do everything I can to minimize Putin’s price hike here at home.” Russian energy imports make up less than 10% of all US energy imports, resembling a rather small percentage in the greater picture, especially when broken down by coal, natural gas, and oil. Despite this, gas and oil prices are expected to increase, with concerns that oil could soon be $200 per barrel.
House Speaker Nancy Pelosi informed House Democrats that the House will be voting on a bill to ban imports related to the Russian energy sector. The bill also includes provisions that pertain to limiting Russia’s access to the World Trade Organization, alongside implementing provisions of the Magnitsky Act to further punish Russia for its actions in Ukraine. The Magnitsky Act is a bill that was passed in 2016 in reaction to the death of Sergei Magnitsky, a Russian tax lawyer responsible for investigating $230 million in fraud that involved Russian taxation authorities. The bill allows the United States Federal Government to sanction those who it views as violating human rights. Joe Biden also called for upwards of $12 billion to be provided to Ukraine to assist the country in the realm of humanitarian and security issues, alongside general economic aid. In his speech, Biden said, “We’re going to continue to support the brave Ukrainian people as they fight for their country. We’re going to support them against tyranny, oppression, and violent acts of subjugation.”
In an effort to relieve the expected pressure on the oil market, US officials have traveled to Venezuela to discuss easing sanctions in order for the country to sell more of its oil on the international market. The talks have initially made little progress. Joe Biden may make a trip to the Middle East in an effort to convince the oil and gas exporting states in the region to increase production to provide an answer for growing demand during a time of shrinking supply.
In related news, Poland has recently declared that its fleet of MiG-29s will be made ready for the United States, and that it is willing to deploy them to the US operated Ramstein Air Base in Germany. The Polish Foreign Ministry has said they are willing to go through with this arrangement provided the US supplies the country with “used” equivalent aircraft, and urges all NATO member states with former Soviet equipment to do the same. MiG-29s are the platform of fighter aircraft operated by Ukraine and other post-Soviet states. Since last week, negotiations have been ongoing to transfer fighter aircraft from NATO’s post-Soviet members to Ukraine, as Ukrainian pilots are familiar with their aircraft and would therefore require no training, an effort that is seen as critical to the war effort in Ukraine. Negotiations have been ongoing, and the recent move by Poland, which came as a surprise to the US government, has been declared untenable by the Pentagon, marking yet another speed bump in the effort to supply Ukraine with fighter aircraft. The Pentagon cites the logistical challenges present in providing Ukraine with such aircraft. Ukrainian President Zelenskyy has urged the West to do more to aid Ukraine in battling Russia’s invasion.
