The United States administration has said that it consulted its European allies before banning the import of Russian oil and gas while stressing that it recognises not all of its partners were in a position to follow suit. US President Joe Biden on Tuesday announced that his country would ban the import of Russian oil and gas, "targeting the main artery of Russia's economy" in response to its invasion of Ukraine. Europe, which is far more dependent on Russian energy than the United States, announced Tuesday a plan to cut gas imports from Russia by two-thirds this year, The Washington Post reported.
The latest move is likely to escalate further tension between the two countries and would impose a greater economic cost to invading Ukraine. A senior official in the Biden administration later said, reported news agency AP: "As a result of our historic coordination, Russia has become a global economic and financial pariah. Over 30 counties, representing well over half the world's economy, have announced sanctions that impose immediate and debilitating economic costs on Russia, cut off its access to high tech, sap its growth potential and weaken its military for years to come," he said.
By isolating Russia's Central Bank from the global financial system, the US has disarmed Putin's war chest of foreign reserves and he can do very little to slow the freefall of his currency.
By an executive order signed on Tuesday, Biden banned the import of Russian crude oil and certain petroleum products, liquefied natural gas, and coal. This step is aimed at depriving Russia of billions of dollars in revenues from US drivers and consumers annually. Last year, the US imported nearly 7,00,000 barrels of crude oil and refined petroleum products from Russia daily. "In taking this action, we consulted with European allies closely, but we do not expect them and did not ask them to join us. The United States is able to take this step because of our strong domestic energy production and infrastructure and we recognise that not all of our allies and partners are currently in a position to join us," said a senior official in the Joe Biden administration, according to AP.
The executive order also banned new US investment in Russia's energy sector, to ensure that American companies and investors are not underwriting Vladimir Putin's efforts to expand energy production inside Russia, the White House said. It mentioned that Americans will also be prohibited from financing or enabling foreign companies that are investing to produce energy in Russia.
Russian forces launched military operations in Ukraine on February 24, three days after Moscow recognised Ukraine's breakaway regions—Donetsk and Luhansk—as independent entities.
