The United States and the United Kingdom have restricted Russian oil imports, and the European Union is reducing its reliance on Russian gas in response to Russia’s invasion of Ukraine.
“The primary artery of Russia’s economy” was the phrase used by US President Joe Biden to describe the move.
Soon after the European Commission announced that it would cut EU gas use by two-thirds, he spoke out.
At one time on Monday, Brent crude oil reached $139 (£106) a barrel, its highest level in nearly 14 years.
What would happen if Russia’s oil and gas were no longer available?
a strategy to wean Europe off of Russian gas
President Biden declared, “We’re prohibiting all imports of Russian oil, gas, and energy.”
Therefore, Russian oil won’t be accepted in US ports anymore, and the American people will deliver [President Vladimir] Putin another tremendous blow. ” Read the latest news Russia withdraw troops from Ukraine-demands Russia
It was “not without cost at home,” Mr. Biden said, but the decision was made “in close consultation” with allies.
By the end of 2022, the United Kingdom also plans to stop importing Russian oil.
Despite Boris Johnson’s admission that the sanctions will not have an immediate effect on Russia, he emphasized that “the economic impact of the sanctions the UK has led has been extreme” and that “the pressure we are already seeing on Russia.”
Russia is the source of roughly 8% of US oil and refined product imports, while the country accounts for about 6% of UK oil imports.
The EU is heavily reliant on Russian energy and has stated that it will shift to alternate sources and accelerate the expansion of clean energy to make up for the shortfall, to make Europe independent of Russian fossil fuels “far before 2030.”.
Because the measures are anticipated to raise wholesale prices already high, even countries with limited Russian energy imports would feel the impact.
Additionally, the central bank’s assets were frozen, some Russian banks were cut off from global payment networks, and Germany suspended the Nord Stream 2 pipeline that would have transported more gas from Russia to Germany. All these measures were put in place in response to Russia’s invasion of Ukraine.
Companies that have not withdrawn from Russia are under increasing pressure to do so.
Consumers should expect higher gas prices and bills as a result of this decision.
A large part of Russia’s economy is reliant on oil and gas. Third largest oil producer in the world after Saudi Arabia and the United States.
It was rumored to block its main gas pipeline to Germany and warn of “catastrophic” effects for global economics before the steps were announced.