The United States and Great Britain, in agreement with their European allies, tighten Western sanctions over the war in Ukraine and halt Russian imports.
Western sanctions against Russia are tightening. The United States and the United Kingdom have announced a ban on imports of Russian hydrocarbons, heeding the repeated calls of Ukrainian president Volodymyr Zelensky. The decision is in keeping with the European Union's REPowerEU action plan, also presented on 8 March, whose objective is to break free from energy dependence on the Kremlin.
The first announcement came from US president Joe Biden at a press conference: "We are banning all imports of Russian oil, gas and energy." Although Russian petroleum products account for 8 per cent of total imports — 3 per cent for crude oil alone — the decision will come at a cost, and it will be American consumers who pay it. It is the only way to strike "the main artery of the Russian economy" and deal "a powerful blow to Putin's war machine."
"I will do everything in my power to minimise price increases here at home," the Democratic leader continued, stating that he made this decision together with European allies. "We understand that many of our European allies may not be in a position to make similar decisions," given that the United States imported 700,000 barrels in 2021 compared with over 4 million for Europe. US support will therefore be directed at "developing a strategy that also reduces their dependence on Russian energy," he added — in the hope, it should be noted, that for the EU this does not translate into greater dependence on non-Russian suppliers.
It is not a straightforward decision. In recent weeks inflation has risen sharply and barrel prices have been soaring. On 7 March alone, merely out of fear that such a ban might be imposed, the cost of a barrel of North Sea Brent crude had hit $139.13 and US WTI $130.5, historic highs not seen since 2008. Immediately after Biden's announcement, Brent prices surpassed $130 a barrel and, the American Automobile Association (AAA) forecasts, the price of oil and petrol will not fall.
In the wake of this announcement, the British too have set an embargo on oil, petroleum products and gas — which amount to 4 per cent of the total — by the end of 2022. Over the course of this year the United Kingdom will break free from its dependence on Russian oil, Prime Minister Boris Johnson stated in a declaration: "We are confident this can be achieved over the course of the year by working with industry and by giving businesses the time they need to adjust and to make sure consumers are protected."
Great Britain too, as explained by British Secretary of State for Business and Energy Kwasi Kwarteng, is considering how to cut exports.
Government estimates already point to 54 per cent rises in April bills for gas and electricity, as well as higher prices at the petrol pump. These increases are unavoidable; the promise, however, is to set out a new supply strategy by encouraging a transition that is gradual and effective.
