On March 8th, President Joe Biden banned the import of all natural gas and petroleum products from Russia. “Russian oil will no longer be accepted in U.S. ports, and the American people will deal another powerful blow to Putin’s war machine,” said Biden. The move is something he calls the most significant package of economic sanctions in history.
According to the White House, the United States imported some 700,000 barrels of crude oil from Russia every day. Banning the importation of that product will cut Russia off from billions of dollars in revenues moving forward. At the same time, we can expect to see price bumps here in the states as a result of this action.
As inflation rises to its highest level in some 40 years, the administration says that it’s going to do everything it can to negate the effects of “Putin’s price hike.” Biden justified the decision based on the tenants of defending freedom saying “defending freedom is going to cost.” and that “We will not be part of subsidizing Putin’s war”.
“This is a step that we’re taking to inflict further pain on Putin, but there will be costs as well here in the United States,” Biden said. “I said I would level with the American people from the beginning, and when I first spoke to this I said defending freedom’s going to… cost us as well. Republicans and Democrats alike understand that. Republicans and Democrats alike have been clear that we must do this,” he added.
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That sentiment follows multiple direct pleas from Ukrainian President Volodymyr Zelenskyy to cut off Russian imports. It’s also one that has seen bipartisan support. “President Biden is finally doing what members of Congress have been pushing for all along,” Sen John Barrasso, R-Wyo., and a member of party leadership, said Tuesday. “His decision to ban Russian oil is a much-needed step to kill Putin’s cash cow.”
The crude oil imported from Russia in the past has made up only a very small percentage of the total so supplementing the deficit shouldn’t be too difficult. Last week, the White House approved an emergency sale of 30 million barrels from the Strategic Petroleum Reserve and ultimately committed to releasing some 90 million in total.
Still, there’s no way to have a clear picture as to the total impact that will be felt at the pump over this latest blow to the Russian economy. Just yesterday we reported on how high gas prices are getting and with this news it seems very clear that they’re only going to get higher for some time.