Biden bans Russia oil imports to U.S., warns gasoline to rise further

WASHINGTON, March 8 (Reuters) – U.S. President Joe Biden on Tuesday imposed a right away ban on Russian oil and different power imports in retaliation for the invasion of Ukraine, amid sturdy assist from American voters and lawmakers, although the transfer will drive up U.S. power costs.

“We’re banning all imports of Russian oil and fuel power,” Biden informed reporters on the White Home. “Meaning Russian oil will now not be acceptable in U.S. ports and the American individuals will deal one other highly effective blow to (Russian President Vladimir) Putin’s struggle machine.”

The ban caps sweeping U.S. and European sanctions imposed on Moscow for launching the most important struggle in Europe since World Warfare Two. Russian strikes have focused Ukrainian cities and killed a whole lot of civilians, some as they tried to flee their houses. learn extra

Biden, who has pledged that U.S. troopers won’t go to Ukraine to combat, voiced America’s assist for the Ukrainian individuals, and predicted their final victory.

“Russia could proceed to grind out its advance at a horrible worth, however this a lot is already clear: Ukraine won’t ever be a victory for Putin. Putin could possibly take a metropolis, however he’ll by no means be capable of maintain the nation,” he mentioned.

Oil costs jumped on the information, with Benchmark Brent crude LCOc1 for Might climbing by 5.4% to $129.91 a barrel by 1345 GMT. learn extra

Retail gasoline costs in the US surged to an all-time file on Tuesday, with the typical value of a retail gallon of gasoline hitting $4.173 early Tuesday, in response to the American Vehicle Affiliation.

Biden signed an govt order on the ban quickly after his remarks. The ban goes into impact instantly, however provides consumers 45 days to wind down current contracts, a senior administration official informed reporters.

The transfer additionally bans new U.S. funding in Russia’s power sector, and prohibits People from taking part in any international investments that move into the Russian power sector, the official mentioned.

Biden has been working with allies in Europe, who’re much more depending on Russian oil, to isolate Russia’s energy-heavy economic system and Putin. Britain introduced shortly earlier than Biden’s remarks that it will part out the import of Russian oil and oil merchandise by the top of 2022. learn extra

The US consulted intently with allies on the ban, however didn’t ask them to hitch in, and didn’t count on that they’d, the official mentioned.

Biden mentioned sanctions imposed by the US and its allies had already precipitated the Russian economic system to “crater” and vowed to proceed ratcheting up strain on Moscow to cease a struggle that compelled greater than 2 million individuals to flee the nation.

PROFITEERING WARNING

The US imported greater than 20.4 million barrels of crude and refined merchandise a month on common from Russia in 2021, about 8% of U.S. liquid gasoline imports, in response to the Vitality Info Administration. The US additionally imports a negligible quantity of coal from Russia.

Biden predicted costs would rise additional on account of “Putin’s struggle,” however pledged to do all he might to ease the ache for the American individuals. He additionally warned U.S. corporations towards profiteering or in any other case exploiting the state of affairs.

“The choice right now is just not with out prices right here at residence. Putin’s struggle is already hurting American households on the fuel pump … I’ll do every little thing I can to reduce Putin’s worth hikes right here at residence,” Biden mentioned.

“Russia’s aggression is costing us all. It’s not time for profiteering,” mentioned the Democratic president, who has repeatedly focused massive U.S. corporations for unfairly jacking up costs.

In November, Biden had cited mounting proof of anti-consumer conduct by oil and fuel corporations and requested the Federal Commerce Fee to dig deeper into doable “unlawful conduct” out there. learn extra

ELECTION ISSUE

Biden’s Democrats face powerful congressional midterm elections in November when Biden’s dealing with of the economic system, and notably rising costs, is predicted to be a predominant subject with voters.

U.S. presidents are notably susceptible to criticism over excessive gasoline costs due to the nation’s reliance on gas-guzzing autos and lack of public transporation. learn extra

Republican Nationwide Committee Chair Ronna McDaniel was among the many Republicans on Tuesday responsible Biden’s insurance policies for top fuel costs, although many supported banning Russian oil imports.

U.S. Home of Representatives Speaker Nancy Pelosi lauded the import ban and mentioned the Home would cross sturdy, bipartisan laws to assist the transfer on Tuesday, together with taking steps to evaluation Russia’s entry to the World Commerce Group and paving the way in which for additional sanctions.Biden rejected Republican claims that his administration’s insurance policies have been restraining U.S. power manufacturing, noting that some 9,000 permits weren’t being utilized by oil and fuel corporations.

“We’re approaching a file (degree) of oil and fuel manufacturing in the US and we’re on monitor to set a file degree of manufacturing subsequent yr,” he mentioned.

U.S. Senator Chris Coons mentioned gasoline costs would rise in the US and Europe. “That is the price of standing up for freedom and standing alongside the Ukrainian individuals, however it’ll value us,” Coons informed CNN.

Biden mentioned the disaster additionally highlighted the significance of transitioning to scrub power provides.

Reporting by Trevor Hunnicutt, Steve Holland, Jeff Mason, Andrea Shalal and Timothy Gardner; Enhancing by Heather Timmons and Alistair Bell

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