An American official familiar with the matter said that by banning oil imports from oil imports will be banned by Biden because of the Ukraine war Russia, President Biden is adding pressure to Russia’s economy in retaliation for its invasion of Ukraine.
In a move that comes amid mounting pressure from the West to sever its ties with Russia, Shell said Tuesday it will no longer buy oil and gas from Russia and phase out participation in all hydrocarbon activities in the country.
As part of the move, the energy giant said Tuesday it will close its operations in Russia, such as service stations and aviation fuel, and change its crude oil supply chain to remove volumes from that country “as fast as possible.”
The move follows Volodymyr Zelenskyy’s demands that US and Western officials stop the imports, a glaring omission from the massive sanctions imposed on Russia by the West for the invasion. Despite Russia’s severe restrictions on its financial sector, energy exports have kept a steady flow of cash flowing into the country.
The high price of gas and the high inflation, at a 40-year peak, have hurt Biden’s popularity with voters heading into the November election.
The person, speaking on the condition of anonymity to discuss the matter ahead of the announcement, said Biden was slated to announce the move as soon as Tuesday. The White House said Biden would speak on Tuesday morning to announce “actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.”
By limiting the world’s second-largest oil exporter after Saudi Arabia, and the largest natural gas exporter, US officials could undermine the unity they say is essential to confronting Putin.
Rather than acting alone, the US will collaborate closely with its European allies, who are more reliant on Russian energy supplies. In Europe, one third of the fossil fuel consumption comes from Russia. The US does not import Russian natural gas.
At the outset of the conflict, Biden explained that he was hesitant to impose energy sanctions because he wanted “to limit the pain the American people are feeling at the gas pump.”
The move follows pleas by Ukrainian President Volodmyr Zelenskyy to US and Western officials to cut off the imports, which had been a glaring omission the massive sanctions put in place on Russia over the invasion. Energy exports have kept a steady influx of cash flowing to Russia despite otherwise severe restrictions on its financial sector.
Biden was set to announce the move as soon as Tuesday, the person said, speaking on the condition of anonymity to discuss the matter before an announcement. The White House said Biden would speak on Tuesday morning to announce “actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.”
Inflation adjusted, that would be around $5.37 in 2022 prices. The previous record was set in July 2008 at $4.10.