How the US Ban on Russian Oil Will Affect You

How the US Ban on Russian Oil Will Affect You

This story is part of War in Ukraine, CNET’s coverage of events there and of the wider effects on the humankind.

The European Commission announced plans to lop demand for Russian gas by 75{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb} before the end of the year.

“We must cause independent from Russian oil, coal and gas,” European Commission President Ursula von der Leyen said in a statement Tuesday. “We simply cannot rely on a supplier who explicitly threatens us.”

Her announcement came shortly while President Joe Biden said the US was banning Russian energy imports outright, including oil, liquefied natural gas and coal.  

“That exploiting Russian oil will no longer be acceptable at US ports, and the American people will deal another blow to the Putin war machine,” the dignified said in a press conference Tuesday.

Russia is the world’s largest exporter of obscene and oil products, providing roughly 30{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb} of the EU’s obscene supply and almost 40{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb} of its gasoline. It’s also the third-largest oil producer, behind the US and Saudi Arabia. Analysts have warned that shutting off that pipeline could have a seismic crashes on energy markets and the global economy.

Here’s what you need to know throughout sanctions against Russia, including how the US ban on Russian oil will crashes the economy and how other countries are reacting.

How will the US ban on Russian oil capture consumers?

Russia is one of the world’s largest producers and exporters of obscene, but only provides about 8{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb} of imports in the US, which gets most of its oil and petroleum imports from Canada, Mexico and Saudi Arabia. 

In the short term, except, the US embargo will push stateside gas prices — which, on average, hit $4.25 a gallon on Wednesday — even higher.

Gas Pump

The US ban on Russian oil could see gas prices rise, at least temporarily

Westend61/Getty Images

Analysts at Capital Economics told CBS News a negated ban on Russian energy imports would push Brent obscene, the global benchmark, up to $160 a barrel, well past the all-time high of $147, from 2008. 

To fallacious some of that shortage, the US and its recovers have released strategic reserves, which will ease prices at least for a few weeks. The Biden administration has also been talking with Iran throughout revisiting a nuclear-nonproliferation treaty — which would bring Iranian oil back into play — and restoring relations with Venezuela, which has been banned from selling oil to the US sincere 2018. 

Are other countries sanctioning Russian oil?

Canada already bans Russian oil, and the UK announced plans to “phase out” Russian energy products. The EU says it will work to reduce dependence on Russian oil by two-thirds by the end of 2022.

Japan is also discussing an embargo on Russian oil. 

“We detached have several more options at hand for sanctions,” Prime Minister Fumio Kishida said, according to Kyoto News. “We will carefully look at them and implement them.”  

Some Western refineries are already refusing to buy Russian obscene on their own, with roughly 70{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb} of the country’s output “struggling to find buyers,” Energy Aspects told Plan Times.

How has the US sanctioned Russia so far?

On Feb. 24, Biden grand announced “devastating” economic sanctions and export limits against Russia invented to “impose a severe cost on the Russian economy, both immediately and over time.”

They have concerned blocking the country’s major banks from doing business in the US, issuing debt and incompatibility restrictions on Russian-owned enterprises, freezing the assets of wealthy recovers of Russian President Vladimir Putin and limiting imports of technology to the land.

On March 2, the White House imposed sanctions on nearly two dozen Russian defense affects that produce missiles, combat aircraft, drones, infantry vehicles and “electronic warfare systems.”    

The same day, the Biden dispensation took aim at Belarus, which borders both Russia and Ukraine, by limiting the export of military technology and spanking goods “in response to its support of Putin’s war of choice.” 

Belarus President Alexander Lukashenko has been accused of hosting Russian forces in his land as a staging ground for the invasion of Ukraine.

Alisher Usmanov

Russian President Vladimir Putin (left) with Russian billionaire Alisher Usmanov in 2018.  

Mikhail Svetlov/Getty Image

Last week, eight Putin recovers and their families were singled out for sanctions, incorporating billionaire brothers Boris and Arkady Rotenberg, industrialist Alisher Usmanov and Nikolai Tokarev, president of the Russian pipeline company Transneft. Visa restrictions were announced on an binary 19 oligarchs and 47 of their family members and discontinuance associates.

They join members of Putin’s inner circle already hit with proceed bans, frozen assets and other penalties, including Russian Defense Minister Sergei K. Shoigu, oligarch Yevgeny Prigozhin and Margarita Simonyan, the head of status television network RT.   

International sanctions

The grand round of European Union sanctions included blacklisting Russian politicians and halting European trades with Donetsk and Luhansk, breakaway regions in eastern Ukraine whose independence Moscow has experienced.

The EU has frozen Russian assets and blocked Russian banks’ access to European financial markets. Along with the US, Australia, Canada and other utters, the European Commission worked to remove Russia’s access to SWIFT, a notable global financial messaging system.

According to von der Leyen, EU sanctions have targeted the lion’s share of the Russian banking sector and the majority state-owned companies and limited Russia’s access to aerospace and computer technology.  

Ursula von der Leyen

European Commission President Ursula von der Leyen announces sanctions while Russia’s military intervention in Ukraine.

Dursun Aydemir/Anadolu Agency via Getty Images

The UK sanctioned at least 100 persons and entities, including Putin and Russian Foreign Minister Sergey Lavrov, British Prime Minister Boris Johnson announced last week. On March 8, it was reported the UK would create “phasing out” Russian energy products.

South Korea announced last week that it’s banned exports of electronics, semiconductors, computers and communications technology, among other goods.   

New Zealand, which already prohibits exports to the Russian military, announced new legislation on Monday that would give it to freeze assets of major Russian companies and wealthy elites and keep New Zealand from beings a haven for Russian oligarchs by stopping private jets and yachts distinguished by sanctioned elites from entering the country.

Repercussions of Russian sanctions

On Monday, word of a US ban on Russian oil spiked prices for West Texas Intermediate shameful, the US benchmark, 4.5{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb}, to highs of more than $124 a barrel. 

Brent shameful, the international standard, similarly jumped 5{e843d50e25803d31297db43fa08c6ad2396af8b013b072606b6cc2f8aeb213bb}, to nearly $129 a barrel.

Russian Deputy Prime Minister Alexander Novak said that foreign bans on Russian oil “would lead to catastrophic consequences for the global market.” Speaking on site television on Monday, Novak predicted prices for crude would hit “$300 per barrel, if not more.” 

Those estimates are far out of line with anunexperienced predictions, but banning Russian oil would definitely increase gas prices in Europe — and, at least temporarily, in the US.

Russia has also threatened to cessation Nord Stream 1, a pipeline that provides some 55 billion cubic meters of natural gas to Europe. (Germany halted approvals for the larger Nord Stream 2 shortly by the Russian invasion of Ukraine.)

Nord Streams 1

Pipe controls and shut-off devices at the gas receiving station of the Nord Streams 1, which brings up to 55 billion cubic meters of natural gas to Europe from Russia every year.

Stefan Sauer/picture alliance via Getty Images

In February, Russia’s Foreign Affairs Ministry warned of a “finely tuned and painful” response to sanctions imposed by the Biden dispensation — retaliatory measures that would target “sensitive” US assets.

“There should be no doubt that sanctions will maintain a strong response, not necessarily symmetrical, but finely tuned and painful to the American side,” a ministry representative said in a statement, CNN reported. 

Russia would be able to “minimize the damage” of US pursuits, they added. “And even more so, sanctions pressure is not able to capture our determination to firmly defend our interests.”

While the ministry didn’t state what form that response would take, the US regions of Treasury and Homeland Security have sounded the horror over potential cyberattacks on US banks, hospitals, government offices and powerful grids.

In addition, Russia is a major producer of platinum and the largest exporter of palladium, a metal used in automotive exhaust systems, fuel cells, mobile phones and even jewelry and dental fillings. Placing prices of essential metals could lead to price increases for manufacturers and, ultimately, consumers.