Biden announces ban on Russian oil imports: Key takeaways

US President Joe Biden on Tuesday announced that his administration will ban imports of Russian oil and gas and energy over the Ukraine invasion. The move is a major escalation to dent Russian economy and it might further put oil markets on the boil.

Key takeaways from Biden speech

“We’re banning all imports of Russian oil and gas and energy,” Biden said Tuesday at the White House. “We will not be part of subsidizing Putin’s war.”

Biden said he made this decision in close consultation with the allies and that US will not be part of subsidising Putin war.

Biden has acknowledged that many European allies may not be able to take such steps as they are heavily dependent on energy imports while the US is a net exporter. To tackle, Biden said US is working closely with its allies on long-term energy strategy to reduce imports.

Biden further said he spoke with Ukranian President Zelensky and continuously monitoring the situation on the ground. "So far, US has provided $1 billion in security assistance to Ukraine," he said.

The US move will be matched in part by the UK, which will announce a ban on Russian oil imports on Tuesday, though it will continue to allow natural gas and coal from the country. Other European nations that rely more heavily on Russian fuels will not participate. The scope of Biden’s action was not immediately clear, including exceptions and the impact on shipments already in transit.

Biden’s move is a significant step in his sanctions campaign against Russia after its invasion of Ukraine. While so-called self-sanctioning by the oil industry has limited some purchases of Russian barrels, an outright US ban would further weigh on the market and increase volatility.

Oil prices surged as both US and UK moved to ban Russian oil imports, a decision that is expected to worsen disruptions in the global energy market as Russia is the second-largest exporter of crude.