WASHINGTON/LONDON (REUTERS, BLOOMBERG, AFP) - The White House is expected to impose a ban on US imports of oil from Russia as punishment for the invasion of Ukraine, Democratic Senator Chris Coons said in an interview with CNN.
The White House said President Joe Biden was expected to make a sanctions announcement at 10.45am (11.45pm Singapore time).
Mr Coons said the administration was coordinating with European allies “and making sure that we’ve done the groundwork to understand how to effectively implement a ban on Russian energy".
He said: “We are going to see increased gas prices here in the United States. In Europe, they will see dramatic increases in prices. That’s the cost of standing up for freedom and standing alongside the Ukrainian people, but it’s going to cost us."
Separately, Britain will also ban Russian oil imports, Politico reported, citing government officials ahead of an announcement expected later on Tuesday.
Politico said there would be a months-long lead-in time on the ban to allow the global market to adjust and to stop people panic-buying petrol.
There will not be a ban on Russian gas at the same time, but this is still under discussion within the government, Politico reported.
British Prime Minister Boris Johnson said on Monday his government would set out a new energy supply strategy as the Russian invasion of Ukraine and subsequent rally in energy prices accelerate the need for new energy sources and greater self-reliance.
The European Commission published plans on Tuesday to cut the EU’s dependency on Russian gas by two-thirds this year and end its reliance on Russian supplies of the fuel “well before 2030”.
Russia is the world's biggest exporter of oil and natural gas, and until now its energy exports had been exempted from international sanctions. Although the United States is not a leading buyer of Russian oil, its allies are likely to come under pressure to wean their economies off Russian energy.
The announcement will intensify the impact of the war on a global economy already suffering supply shortages and price surges as it lurches out of the pandemic crisis. In the US, pump prices have already surged to a record since Russia launched the invasion on Feb 24, worsening inflation that was already at 40-year highs.
The price of Brent crude, the international benchmark, soared by more than 5 per cent on Tuesday, following news of the expected ban. The price of a barrel reached US$129.92 (S$177.09) at 1430 GMT (10.30pm Singapore time), an increase of 5.45 per cent.
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