The US has reached out to major European allies in a bid to act against Russia's oil sector in response to the ongoing invasion of Ukraine. While the US and its allies have announced sanctions on a number of sectors, Russia's energy sector has not been targeted so far.
Reuters reported US President Joe Biden held a videoconference with leaders of France, Germany and the United Kingdom on Monday over the oil imports issue.
“The White House is also negotiating with US congressional leaders who are working on fast-tracking legislation that would ban Russian imports, a move that is forcing the administration to work on an expedited timeline,” Reuters reported. A senior US official told Reuters any action on curbing Russian oil imports would likely be done only by the US. White House press secretary Jen Psaki told reporters on Monday evening Biden “has not made a decision at this point in time” on whether to sign legislation banning Russian oil imports to the US.
Germany, the largest buyer of Russian crude oil, has so far resisted pressure to act. “Germany is accelerating its plans to expand its use of alternative energy sources but cannot halt imports of Russian energy overnight, German Chancellor Olaf Scholz said on Monday,” Reuters reported.
Russia responds with warning, threat
Russia responded to reports of the West contemplating action on its oil industry, at a time crude oil prices are at their highest since 2008.
Russia's Deputy Prime Minister Alexander Novak said a ban on Russian oil “will lead to catastrophic consequences for the global market. The surge in prices will be unpredictable—more than $300 per barrel, if not more”, AFP reported.
He argued it would be “impossible” to quickly replace Russian oil in the European market. “t will take more than one year and it will be much more expensive for European consumers... European politicians should then honestly warn their citizens, consumers what awaits them and that prices at gas stations, for electricity, for heating will skyrocket,” Novak was quoted as saying by AFP.
Novak also hinted at Russia retaliating against Germany's decision to halt work on the Nord Stream 2 pipeline. He warned Russia could stop natural gas supplies on the Nord Stream 1 pipeline. “So far, we have not made this decision. Nobody will benefit from this. Although European politicians are pushing us to this with their statements and accusations against Russia,” Novak said.
“In connection with unfounded accusations against Russia regarding the energy crisis in Europe and the imposition of a ban on Nord Stream 2, we have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline,” Novak was quoted as saying by Oil Price.
