Page 10 - NorthAmOil Week 10 2022

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US President Joe Biden
announced the ban in
response to Russia’s
invasion of Ukraine.

US bans imports of Russian oil and gas

US-RUSSIA US President Joe Biden announced on March 8 “We’re moving forward this ban understand-
that his country was banning imports of Russian ing that many of our European allies and part-
oil and gas, as well as coal. This comes as the US ners may not be in a position to join us,” Biden
tightens its sanctions against Russia in response stated. “But we’re working closely with Europe
to Moscow’s invasion of Ukraine. and our partners to develop a long-term strategy
In a statement, the White House described to reduce their dependence on Russian energy
the move as “a significant action with widespread as well.”
bipartisan support that will further deprive Pres- Indeed, the European Union unveiled a plan
ident Putin of the economic resources he uses on the same day to reduce imports of Russian
to continue his needless war of choice”. The US gas by two-thirds within a year. And the UK,
made the decision in consultation with global which left the EU in 2020, said it would phase
allies, as well as members of Congress from both out oil and oil product imports from Russia by
parties, the statement continued. the end of 2022, and would consider doing the
According to the US Energy Information same with gas. The US is not
Administration (EIA), US imports of Russian Moscow is retaliating against the latest
crude and refined products averaged roughly moves. On the evening of March 8, Putin issued as exposed to
672,000 barrels per day (bpd), or 8% of total liq- a decree banning exports of certain commodities
uid fuel imports, over the course of 2021. The US and raw materials until the end of the year. The Russian oil and
is not as exposed to Russian oil and gas as Euro- details were initially unknown, with the Russian
pean countries, but nonetheless, Biden’s decision cabinet given two days to draw up a list of com- gas as European
is expected to have far-reaching impacts, includ- modities and countries subject to the ban. Sub- countries, but
ing putting more upward pressure on domestic sequently, Russia announced a ban on sales of
gasoline prices. over 200 products, but stopped short of banning nonetheless,
Under the March 8 executive order, Biden energy exports.
will also ban new US investment in Russia’s Russian Deputy Prime Minister Alexander Biden’s decision
energy sector and will prohibit US citizens Novak had warned a day earlier that retaliatory
from financing or enabling foreign companies measures could include cutting gas supplies to is expected to
that are investing into energy production in Europe via the Nord Stream 1 pipeline. Novak have far-reaching
Russia. said the country has other options for selling its
The ban follows days of debate – domesti- oil if the US and EU proceeded to ban Russian impacts.
cally and internationally – over the merits of a imports, warning that oil prices could rise to
potential embargo on Russian crude. Countries $300 per barrel or more because of such bans.
including Germany have resisted a full interna- The Brent crude benchmark was trading at
tional embargo on fears over the impact such around $127 per barrel as of March 9 – the high-
a move would have in Europe, which is much est level since 2012 – having briefly spiked to
more heavily dependent on Russian oil. $139 per barrel on March 7.™

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