Russian energy exports left out of US sanctions

WASHINGTON • Russian energy exports escaped sanctions from the United States as President Joe Biden toughened curbs on the country while avoiding measures that could send oil prices surging further, worsen Europe's gas shortage and make petrol more expensive for Americans.

Harsher sanctions announced by Mr Biden on Thursday following the invasion of Ukraine included blocking major Russian banks and cutting off the country from semiconductors and advanced technology, although buying and selling Russian energy supplies are still allowed.

"In our sanctions package, we specifically designed energy payments to continue. We are closely monitoring energy supplies for any disruption," said Mr Biden.

In coordinated moves, European Union leaders wrapped up an emergency summit early yesterday with an agreement to punish Moscow for its invasion by imposing severe sanctions targeting its financial, energy and transport sectors.

European Commission chief Ursula von der Leyen told a media conference afterwards they "will have maximum impact on the Russian economy and the political elite".

Ukrainian President Volodymyr Zelensky addressed the gathering by video link, telling European leaders that "he does not know if he will be able to speak with us another time", Luxembourg's Prime Minister Xavier Bettel said as he left.

While the EU agreement on the outline of the sanctions was rapid, there were clear divisions over the option of kicking Russia out of the Swift network that the world's banks use to securely send messages to carry out transactions.

Mr Zelensky has urged the West to use that lever. But Mr Biden, speaking in Washington as the EU summit started, said: "It is always an option, but right now that is not the position that the rest of Europe wishes to take."

German Chancellor Olaf Scholz suggested that the Swift option and other measures should be kept "for a situation where it might be necessary, for other things".

In a related development, Japan will strengthen sanctions against Russia to include financial institutions and military equipment exports, Prime Minister Fumio Kishida said yesterday, adding that impact on his resource-poor nation's energy supply is unlikely.

Mr Kishida also said he hoped coordinated action with other members of the Group of Seven nations against Russia would send a message to stem any aggression in Asia and other regions.

But Russia's Ambassador to Japan Mikhail Galuzin said he had recently notified a top Japanese official that there would be a response to Japan's actions.

In Britain, Prime Minister Boris Johnson unveiled the country's largest package of sanctions against Russia on Thursday, targeting banks, members of President Vladimir Putin's closest circle and wealthy Russians who enjoy high-rolling London lifestyles.

A government official said the coordinated sanctions would knock percentage points off the Russian economy in the next 12 to 18 months. Mr Johnson also called for Russia to be excluded from Swift.

Australia imposed more sanctions yesterday against Russia, targeting several of its elite citizens and lawmakers.

Prime Minister Scott Morrison said the sanctions will be placed against "oligarchs whose economic weight is of strategic significance to Moscow" and over 300 members of the Russian Parliament who voted to authorise sending Russian troops into Ukraine.

He voiced concerns over the lack of strong response from China, and criticised Beijing over reports it had eased trade curbs with Moscow by allowing imports of wheat from Russia.

REUTERS, AGENCE FRANCE-PRESSE