According to reports on Tuesday, President Joe Biden’s administration has banned Russian oil imports due to the ongoing conflict in Ukraine. The US president said the decision to ban Russian oil imports was reached in ‘close consultation’ with allies. Though Russia reportedly accounts for less than 10% of US imports of oil and petroleum products, the US has already seen an increase in oil prices in recent days.
‘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 a statement from the White House. In his statement, Biden said that while Russia may continue to grind out its advance at a terrible price, it’s already clear that Ukraine will never be a victory for Putin, adding, ‘Putin may take a city, but he won’t hold it’.
As a result of the Russian invasion of Ukraine, Brent crude futures hit $130 on Tuesday, with oil prices soaring nearly 30 percent in the US. Biden’s announcement is expected to increase crude prices since Russia is the world’s largest exporter of crude and oil products. International buyers began to shun Russian oil after the US and its allies announced a wave of sanctions over the high shipping costs. The energy giant Shell announced on Tuesday that it would no longer buy crude oil from Russia and will not participate in its gas and oil projects.
According to Shell, the move is in line with new government guidance, which calls for a phased withdrawal from all hydrocarbons in Russia, including crude oil, petroleum products, gas, and liquefied natural gas. ‘As a first step, the company will cease all spot purchases of Russian crude oil,’ it said while announcing that it was ceasing operations in Russia for aviation fuel and lubricants stations.
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