President Joe Biden did the right thing Tuesday in banning the U.S. importation of Russian oil, coal and liquefied natural gas in the wake of that country’s unwarranted invasion of Ukraine.
The ban means that U.S. oil dollars won’t fund Russia’s violence in Ukraine.
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“Americans have rallied to support the Ukrainian people and made it clear we will not be part of subsidizing [Russian President Vladimir] Putin’s war,” Biden said in a speech.
An energy ban, along with other tough sanctions already imposed, are the morally right moves to make to counter Putin’s unprovoked aggression, which has sent over a million Ukrainians fleeing as refugees.
The energy ban came on the same day that McDonald’s shuttered hundreds of stores in Russia, while Starbuck’s and other American companies paused business operations there too.
Putting the screws on Russia’s economy
Of course, Biden’s energy ban alone won’t immediately bring Russia to its knees, or to the bargaining table to negotiate peace.
That’s because only 3% of U.S. crude oil imports come from Russia. In addition, Russian oil accounts for just 1% of the crude oil processed by U.S. refineries, according to the American Fuel & Petrochemical Manufacturers, a trade association.
Russia won’t feel the ban’s impact all at once, either. Biden’s act immediately stops new purchases of Russian energy, but buyers with existing contracts have 45 days to stop deliveries.
Still, the ban, along with other economic sanctions levied against Russia by the U.S. and the international community since Russia invaded Ukraine on Feb. 24, further complicates Putin’s ability to fund his senseless war and maintain a viable Russian economy over the long term.
“The Russian ruble is now down by 50% since Putin announced his war,” Biden said. “One ruble is now worth less than one American penny.” The oil ban tightens the economic screws a little more.
Undoubtedly, U.S. gasoline and energy consumers — who are already weathering sudden and historic price hikes right now — will feel the pain of this move. Chicago gasoline prices, already flirting at $5.00 a gallon for regular fuel, will surely rise even more now.
Biden did warn oil companies not to price-gouge, although we suspect the horse might be out of the barn on that one.
But even as consumers make sacrifices, we believe most Americans recognize that Biden took a necessary step to let Putin know, yet again, that he and Russia will pay a substantial economic price for launching a senseless war.
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