US to Soon Announce Ban on Russian Crude Oil Imports... Independent Sanctions

[Image source=EPA Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] The Biden administration in the United States is expected to officially announce a ban on imports of Russian crude oil on the 8th (local time).

According to the White House, President Biden will unveil additional measures to hold Russia accountable for its invasion of Ukraine starting at 10:45 a.m. Eastern Time on the same day. This corresponds to 12:45 a.m. on the 9th in Korean time.

Local media including Bloomberg reported that President Biden will independently impose a ban on Russian crude oil imports without the participation of European allies. The ban is expected to include Russian crude oil, liquefied natural gas (LNG), and coal.

Until now, the Biden administration has shown reluctance to impose energy sanctions despite criticism that sanctions on Russia without an "energy embargo" are "full of holes" (Time magazine). This is because they judged that the damage to the U.S. and its allies would be greater than the impact on Russia.

Russia, the world's second-largest oil exporter, accounts for 11% of global exports. There have been concerns that energy sanctions could cause international oil prices and fuel prices in various countries to skyrocket. Facing political pressure due to inflation at its highest level in 40 years, the Biden administration had no reason to take a strong stance against Russia ahead of the midterm elections in November.

However, as repeated sanctions failed to stop Russian President Vladimir Putin's actions, it is understood that the administration has finally decided to use the energy sanctions card. Last year, Russia reportedly earned about $120 billion (approximately 146 trillion won) from crude oil and natural gas exports.

Russian crude oil accounts for about 3% of U.S. crude oil imports. Including petroleum products such as fuel oil needed for gasoline and diesel production, the figure is about 8%.

If the U.S. blocks imports of Russian crude oil, it is known to be considering measures such as easing economic sanctions on Venezuela, resuming Iranian crude oil exports upon the conclusion of the nuclear deal (JCPOA), increasing oil production in the Middle East, and boosting domestic U.S. production to secure alternative crude oil.

Initially, the U.S. discussed energy sanctions simultaneously with European allies, but some European countries, especially Germany, which are highly dependent on Russia, expressed opposition. The EU depends on Russia for 40% of its annual natural gas supply. In this regard, the EU is expected to announce as early as the same day plans to reduce imports of Russian gas by up to 80% this year and to become independent from Russian energy supplies before 2030.

Meanwhile, U.S. gasoline consumer prices have hit an all-time high. According to the American Automobile Association (AAA), the national average gasoline price was recorded at $4.173 per gallon that morning. This is an increase of $0.55 from a week ago and $0.72 from a month ago.

This content was produced with the assistance of AI translation services.