Biden warns the us about changes with gas & oil prices

Biden bans Russian oil, warns of higher prices at US pumps

According to (Washington) (AP)—" To punish Russia for its invasion of Ukraine, President Joe Biden declared on Tuesday that the United States would restrict all imports of Russian oil. However, he also noted that this would raise prices for Americans, particularly at the petrol pump.

Ukrainian President Volodymyr Zelenskyy had pleaded with US and Western diplomats to stop the imports, which had been omitted from the huge sanctions placed in place on Russia over the invasion. Despite significant constraints on Russia's banking sector, energy exports have provided a continuous flow of funds to the country.

He called the new action a "powerful blow" against Russia's ability to fund its ongoing offensive, declaring that the United States "will not be part of subsidizing Putin's war."

"Defending freedom is going to cost," he said as he warned the American people about rising prices.

Biden said the United States was working closely with European friends, who rely more heavily on Russian energy supplies and may not be able to join in soon, but he conceded that they may not be able to. The announcement was the latest attempt by Vice President Joe Biden to isolate Russia from much of the global economy and make the Ukraine invasion a strategic failure for Vladimir Putin, even if he manages to take territory.

"Ukraine will never be a win for Putin," Vice President Biden declared.

Thankful for US and @POTUS personal leadership in striking at the core of Putin's war machine and barring oil, gas, and coal from the US market," wrote Zelenskyy in a tweet praising Biden. Encouraging other countries and leaders to do the same

The European Union is expected to make a commitment this week to reduce its dependency on Russian energy as quickly as possible, but filling the hole without severely harming the EU economy would likely take some time to do. There will be an end to Russian oil and oil products imported into the United Kingdom by the end of the year, the country declared on Tuesday.

In contrast to the United States, which is a significant oil and gas producer, 90% of Europe's gas and 97% of its oil products are imported. 40 percent of Europe's gas and a quarter of Europe's oil comes from Russia. U.S. natural gas is not imported from Russia.

The president's decision to impose oil sanctions on Russia has put him at odds with domestic political interests. The United States imports only a small percentage of Russian oil, but Vice President Biden has indicated he does not want to restrict the country's supply, which would raise the price of gasoline.

Gas prices, which are driving up inflation to its worst level in 40 years, could damage Biden's re-election chances in November's midterm elections.

It is already harming American families at the petrol pump because of Putin's war, Vice President Biden said. "I'm going to do everything I can to reduce Putin's price spike here at home," he added.

For weeks, gas prices have risen as a result of the ongoing conflict in Ukraine and the possible penalties against Russia's energy sector. For the first time in history, the average price of a gallon of gasoline in the United States touched a record $4.17 Tuesday, up 10 cents in one day, and up 55 cents since last week, AAA reported.

But he warned against "excessive price hikes" and "exploiting" consumers, saying it was natural that costs were rising.

Many Western energy companies, notably ExxonMobil and BP, had already begun cutting connections with Russia and limiting imports before the US ban on Russian oil and gas. Shell, which purchased Russian oil this weekend, apologized for the move on Tuesday and promised to stop purchasing Russian energy supplies in the future, in response to international criticism. Imports of Russian crude oil fell to zero in the final week of February, according to preliminary figures from the U.S. Energy Department.

According to the US Energy Information Administration, the United States purchased 245 million barrels of crude oil and petroleum products from Russia in 2021, a 24 percent increase over the previous year.

Max Bergmann, a former State Department official who is now a senior fellow at the Democrat-leaning Center for American Progress, said it was an important move to show Russia that energy is on the table.

Bergmann said that the United States' ability to move ahead of Europe, which is more reliant on Russian energy, was not surprising.

"Even though the processes are not symmetrical, everything is being done in harmony," he remarked. As a matter of fact, "We're always chatting to them."

A 45-day "wind down" period has been granted for the continuation of deliveries under current contracts, according to the White House.

Biden's decision to step down was originally reported by Bloomberg on Tuesday.

The announcement by the White House coincides with growing bipartisan support on Capitol Hill for a Russian energy embargo and other sanctions.

Nancy Pelosi's "Ban it" remark last week was a major step forward.

In response to White House opposition to moving before Vice President Biden had made his decision, Democrats on the influential Ways and Means Committee announced a bipartisan plan to restrict Russian oil imports and place more trade penalties on the country on Monday, according to an aide.

It's about time, Sen. John Barrasso, a member of the Republican leadership, said Tuesday. "President Biden is finally doing what members of Congress have been pushing for all along," he said. A ban on Russian oil is an important step in the fight against Vladimir Putin's cash cow.

According to Harvard professor and former Obama economic adviser Jason Furman: "The US economy can adequately handle any obstacles connected with increasing oil prices. However, there will be some difficulties. There's no way around it: gas prices are going to go up.

Pelosi announced that the House of Representatives would vote on legislation banning Russian oil imports, imposing trade costs on Russia, and expanding sanctions authority against Russians for attacks on Ukrainian civilians on Tuesday.

Oil and gas revenues in Russia accounted for more than a third of government income prior to the invasion. Despite the coordinated release of strategic reserves, global energy prices have continued to rise since the invasion, making Russian exports even more lucrative.

International financial institutions have imposed sanctions on Russia's main banks, its central bank, and its finance ministry as a result of Russia's invasion of Ukraine. They have also taken steps to exclude specific financial institutions from the SWIFT system for international payments.

However, Treasury Department rules enable Russian energy transactions to continue through non-sanctioned institutions that are not domiciled in the United States in order to minimize any disruptions to the global energy markets.

Chancellor Olaf Scholz has stated that he opposes a European embargo on Russian energy imports and that there is no alternative to meet the EU's demands for fuel, heat, and power, as well as the needs of industry. When German Vice Chancellor Robert Habeck visited the United States this week, American officials told him that Europe was in a different position than the United States.

Germany will not be compelled or asked to do the same, they assured me during our talks. "However, I think we need to create the ability to take similar measures sooner rather than later for us and for me."

The United States could theoretically replace Russian oil imports with oil from other oil-rich countries, but it could be troublesome politically.

The Biden administration has been warned by several influential senators not to enter into any oil import agreements with Venezuela's Nicolás Maduro regime.

Foreign Relations Committee Chairman Bob Menendez said late Monday that "the Biden administration's attempts to unify the entire world against the homicidal tyrant of Moscow should not be hampered by backing up a dictator under investigation for crimes against humanity in Caracas." Like the Ukrainians, the Venezuelan people's democratic ambitions are more valuable than a few thousand barrels of oil.