Last minute: After Russia’s military intervention in Ukraine on February 24, new sanctions came from the USA. US President Joe Biden announced the ban that has been spoken for days. Biden stated that the US has stopped buying oil and natural gas from Russia. After the USA, similar steps came from the EU and the UK. Here are the details of the breaking news…
Highlights from Biden’s statement:
“THIS PROHIBITION WILL HAVE PRICES TO US AS THE USA”
“The USA has banned all Russian oil imports. The ban covers gas and energy. We are aware that not all our allies can join us in this ban. This ban will have its costs to us as the USA. We will continue to put pressure on the war machine Putin. Our aim is to squeeze Putin. Ukraine We gave defense weapons to . We are working with humanitarian organizations.
“THE GROWING SANCTION LIST”
At the weekend, Blinken saw the situation in the border countries personally and will convey it to me. Vice President Harris will travel to Poland and Romania later in the week. Only the EU will not have to undertake this situation. This war is Putin’s war. The ruble has lost more than 50 percent of its value. A ruble is like a cent. There is a growing list of sanctions. Global companies have also stopped their services. The decision we made today makes us pay at home, too. Since this war started, the price of gasoline has increased and will continue to rise in the USA.
“THAT IS NOT THE TIME TO MAKE PROFITS”
This attack is not an opportunity, especially for natural gas and oil companies, to make excessive hikes and abuse them. Now is not the time to profit from here. To protect our economy in the long run, we must be energy independent and transition to clean energy. We also talked to EU countries, we all want to be more independent in the future.”
RUSSIA DECISION FROM EU AND ENGLAND
“Britain will phase out imports of Russian oil and petroleum products by the end of 2022,” said Kwarteng, UK Minister of Labour, Energy and Industrial Strategy. explained.
The European Commission has also released its plan to reduce the European Union’s (EU) dependency on Russian natural gas by about two-thirds within a year and end it “before 2030”. The EU official announced that they will switch to alternative energy sources and increase clean energy in order to end the dependence on Russian energy.
RUSSIA COMING AFTER THE USA AND SAUDI ARABIA
According to the data of the International Energy Agency (IEA), Russia, which is the world’s largest oil producer after the USA and Saudi Arabia, exports crude oil and petroleum products at the level of 10.5 million barrels per day. Crude oil constitutes 7.8 million barrels of this amount.
Russia, which earned approximately 180 billion dollars in revenue from crude oil and petroleum products exports last year, makes 1.5 percent of its total crude oil and petroleum products exports to the United Kingdom and 1.3 percent to the USA.
EMBARGO DECISION WILL COVER 2.8 PERCENT OF EXPORTS
Thus, the embargo decision announced by the USA and the UK will cover 2.8 percent of Russian crude oil and petroleum products exports.
Therefore, the impact of the embargo decision on oil prices is expected to be limited. Oil prices are expected to rise if Europe imposes an oil embargo.
The barrel price of Brent oil, from the beginning of the Russia-Ukraine War on February 24 to March 8, increased by 37.6 percent from $ 96.6 to $ 133 percent.
Russia makes about 40 percent of its total exports of crude oil and petroleum products to Europe.
9 PERCENT OF US IMPORTS FROM RUSSIA
Russia’s share in the total imports of crude oil and petroleum products to the USA is 9 percent, and 19 percent in the UK’s imports.
The value of the oil cargoes that the USA recently ordered from Russia was around 600 million dollars.