U.S’ Ban on Russian Oil Imports

On 8th March 2022, President of U.S. Joe Biden imposed an immediate ban on oil and gas energy imports from Russia, by signing an executive order.

About the ban

  • The ban on oil imports is in support of the Ukrainian people amid the Russian invasion of Ukraine. The ban got huge support from U.S. voters and lawmakers.
  • The executive order also mentioned that new U.S. investments in the Russian energy sector will be banned. It also prohibited U.S. citizens from participating in any foreign investments that go into Russia’s energy sector.
  • Even though the import ban comes into effect immediately, there will be a 45 days window for oil importers in the U.S. to wind down existing contracts with Russian exporters.
  • The ban will however lead to an increase in oil and gas energy prices in the U.S. It will also have an impact on international oil prices as the supply chains will be disrupted.
  • Immediately after the announcement, oil prices skyrocketed. The Benchmark Brent crude LCOc1 for May climbed 5.4% and stood at $129.91 a barrel.

U.S. – Russia energy trade

In 2021, on average, the U.S. imported around 20 million barrels of crude and refined products a month. This amounts to 8% of U.S. liquid fuel imports.

Earlier, the United Kingdom announced that it would gradually phase out the import of oil and oil products from Russia by the end of 2022.

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