The EO bans the importation into the US of Russian crude oil and certain petroleum products, liquefied natural gas and coal. Last year, the US imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia and this step will deprive Russia of billions of dollars in revenues from US drivers and consumers annually.

It also bans new US investment in Russia’s energy sector, which will ensure that American companies and American investors are not underwriting Vladimir Putin’s efforts to expand energy production inside Russia. Americans will also be prohibited from financing or enabling foreign companies that are making investment to produce energy in Russia.

The US made this decision in close consultation with its allies and partners around the world, as well as Members of Congress of both parties. “The US is able to take this step because of our strong domestic energy infrastructure and we recognise that not all of our allies and partners are currently in a position to join us. But we are united with our allies and partners in working together to reduce our collective dependence on Russian energy and keep the pressure mounting on Putin, while at the same taking active steps to limit impacts on global energy markets and protect our own economies,” US government said in a statement.

The Administration has already committed to releasing more than 90 million barrels from the Strategic Petroleum Reserve this fiscal, with an emergency sale of 30 million barrels announced just last week. After intensive around-the-clock coordination and consultation by President Biden, the International Energy Agency (IEA) Member countries agreed to a collective release of an initial 60 million barrels of crude oil from strategic petroleum reserves, with the US committing half of that in the emergency sale.

Fibre2Fashion News Desk (KD)