US President Joe Biden on Tuesday announced a ban on US imports of Russian oil, in the administration’s most far-reaching action yet to punish Moscow for invading Ukraine. “We’re banning all imports of Russian oil and gas and energy. That means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to (President Vladimir) Putin,” Biden said in an address from the White House, adding that the decision was taken “in close consultation” with allies. The ban came with Democrats threatening legislation to force Biden’s hand, despite the likely impact on already soaring gas prices.
“We are enforcing the most significant package of economic sanctions in history, and it’s causing significant damage to Russia’s economy,” US President Joe Biden further added. “We’re moving forward with this ban understanding that many of our European allies and partners may not be in a position to join us,” Biden said.
Meanwhile, Russia had, earlier in the day, threatened to take action, including cutting off gas supply to Europe through the Nord Stream 1 pipeline, if sanctions are imposed on its oil exports. “Europe consumes about 500 billion cubic meters of gas per year. Russia provides 40% of that,” Russia’s Deputy Prime Minister Alexander Novak said in a statement late Monday, according to official Interfax agency. He underlined that for decades, Russia had been a reliable partner, and had always fulfilled its contractual commitments and obligations to deliver gas to Europe.
“Given that, as well as the baseless accusations against Russia (…) we know we are fully entitled to take a “mirror” decision and place an embargo on gas transit via Nord Stream 1 which is presently running at 100 percent capacity,” Novak warned.
However, the minister stressed that the decision had not yet been taken and said that with mutual sanctions would “have no winners,” even though European politicians “continue to push us toward it.” “Regrettably, we have seen the statement by European politicians on energy issues and calls to dump Russian oil and gas. European officials are once again trying to shift the problems and failures of their own energy policy of recent years onto Russia,” he said. Currently, Russia ships about 60 billion cubic meters of natural gas a year through the Nord Stream 1 pipeline. Following Russia’s invasion of Ukraine, German Chancellor Olaf Scholz announced halting the certification of the planned North Stream 2 gas pipeline to supply Russian natural gas directly to Germany.
Ban on imports of Russian petroleum products by western nations will have catastrophic consequences for the global economy and it will push crude oil price to over $300 per barrel, Novak has warned. “It is absolutely obvious that abandoning Russian oil will lead to catastrophic consequences for the world market. A surge in prices will be unpredictable—more than $300 per barrel, if not more,” Russian News Agency TASS quoted Novak as saying.
Novak said the ban on Russian oil will lead to a rise in prices for fuel, electricity and heating in Europe and the United States. “It is impossible to replace the volume of Russian oil on the European market quickly, it will take more than one year, and it will be much more expensive for European consumers,” Novak told reporters in Moscow. “Under this scenario, they will become the main victims. European politicians should then honestly warn their citizens, consumers, what awaits them and that prices for gas stations, for electricity, for heating will skyrocket. This will affect other markets, including the American one,” he said.
A report from New Delhi said that amid speculation that fuel prices may rise owing to soaring crude prices due to the Russia-Ukraine crisis, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Tuesday ruled out that the government had controlled oil prices due to elections and said the decision will be taken in the best interest of the citizens. Addressing a press conference, Puri said, “Oil prices are determined by global prices. There is a war-like situation in one part of the country. The oil companies will factor that in. We will take decisions in the best interest of our citizens. To say that the government had controlled oil prices due to elections is not correct. We will make sure that our energy requirements are met.”
Meanwhile, the Ukrainian capital Kyiv braced for a big, all-out Russian assault, even as Ukraine President Volodymyr Zelensky said on Tuesday that he is in Kyiv and is not afraid. The statement comes amid the Russian troops intensifying shelling in several Ukrainian cities. Russian forces are inching closer to the capital Kyiv from the north and west. “I stay in Kyiv. On Bankova Street. I’m not hiding. And I’m not afraid of anyone,” Zelensky said in a video on his official Instagram. He said that he would do as much as it takes to “win this patriotic war”.
Oil depots in Zhytomyr and Chernyakhiv were hit in two airstrikes by Russian forces, Ukraine’s Ministry of Foreign Affairs (MFA) said on Tuesday. “As a result of two air-strikes, oil depots in Zhytomyr and Chernyakhiv were hit,” tweeted Ukraine MFA. Earlier, Head of Sumy Regional State Administration Dmitry Zhivitsky had said that at least 10 people, including children, were killed as a result of targeted bombings by Russia on Sumy.
Meanwhile, Russia on Tuesday declared a ceasefire amid the ongoing conflict in Ukraine from 10 am (Moscow time) to provide humanitarian corridors in the cities of Kyiv, Chernihiv, Sumy, Kharkiv and Mariupol, the Ministry of Foreign Affairs of Russia said in a statement. The development comes following the third round of talks between Russia and Ukraine in Belarus on Monday, which apparently ended in failure. In the meeting, both sides addressed the issues of civilian evacuation and the Ukrainian side assured Russia that the humanitarian corridor will start working from Tuesday.
Ukraine’s military intelligence said on Tuesday that Ukrainian forces have killed a Russian general near the besieged city of Kharkiv, the second Russian senior commander to die in the invasion. Major General Vitaly Gerasimov, first deputy commander of Russia’s 41st army, was killed on Monday, the Chief Directorate of Intelligence of Ukraine’s defence ministry said in a statement. Russia’s defence ministry could not be immediately reached for comment. Another Russian general, Andrei Sukhovetsky, also a deputy commander of the 41st army, was reported killed at the end of February. Ukraine’s Ministry of Foreign Affairs (MFA) on Tuesday said that around 12,000 Russian forces have been killed since the invasion of Ukraine started.