President Biden announced a U.S. ban on all Russian oil, natural gas and coal imports.
The move is part of the administration’s response to Russian President Vladimir Putin’s invasion of Ukraine.
“The United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas and energy,” Biden said on Tuesday morning. “That means Russian oil will no longer be acceptable at U.S. ports and the American people will deal another blow to Putin’s war machine,” he added.
The import ban is not projected to impact the country heavily. U.S. energy imports from Russia amounted to roughly 8% in 2021. Only about 3% of that amount was crude oil.
Still, Biden realizes that it could mean a slight hike in gas prices.
“This is a step that we’re taking to inflict further pain on Putin, but there will be costs as well here in the United States,” he said, noting that he would take steps to minimize the impact.
“I said I would level with the American people from the beginning, and when I first spoke to this, I said defending freedom’s going to … cost us as well,” he said. “Republicans and Democrats alike understand that. Republicans and Democrats alike have been clear that we must do this.”
Russia’s invasion has initiated a slew of sanctions. Russia’s currency has plunged in value and its stock market has closed as companies continue to pull its business.
Last week, Visa and Mastercard announced a suspension of business in Russia last week.
“Effective immediately, Visa will work with its clients and partners within Russia to cease all Visa transactions over the coming days,” Visa said in a press release. “Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation.”
