In finally relenting to pressure from lawmakers and others to halt Russian oil and gas imports as punishment for the ongoing invasion of Ukraine, Biden focused his comments on trying to mitigate consumer impact through a release of oil from the strategic reserves, as well as through long-term policies aimed at reducing demand for fossil fuels, imported or home-produced. But he also had a message for oil companies.
"Russia's aggression is costing us all, and it's no time for profiteering or price-gouging," Biden said, according to a White House transcript of his remarks.
Biden went on to say the U.S. government will "not tolerate" such behavior, although he offered no specifics in an aside focused mostly on praising oil and gas companies that are "leading by example" by ending their operations in Russia without being told to do so.
Biden and his administration have continuously warned that the crippling and ever-deepening sanctions — which the president on Tuesday called "the most significant package of economic sanctions in history" — imposed on Russia, President Vladimir Putin and his inner circle will have repercussions at home.
In his White House remarks announcing the oil and gas import ban Tuesday, Biden said his administration understood that the war against Ukraine was going to force oil and gas prices to rise. But he also told oil and gas companies that the reality of price increases is "no excuse to exercise excessive price increases or padding profits or any kind of effort to exploit this situation," including by exploiting American consumers.
While Europe, which is far more reliant on Russian oil and gas imports, has so far opted against a similar import ban, United Kingdom officials also announced Tuesday that they will phase out import of Russian oil and oil products by the end of 2022. The country is also "exploring options" to end the use of Russian natural gas, Kwasi Kwarteng, U.K. secretary of state for business, energy and industrial strategy, said Tuesday.
The executive order from Biden bans the import of Russian crude oil, certain petroleum products, liquefied natural gas and coal. It also bars U.S. investment in Russia's energy sector and prohibits Americans from financing foreign companies that are making investments to produce energy in Russia.
The Biden administration had already imposed significant sanctions on business with Russia, including with the country's largest banks, and ordered direct sanctions on Putin and other top government officials. The sanctions had so far avoided the energy sector, although major energy companies have exited Russian energy deals in response to the invasion.
Biden's decision to ban oil imports comes after growing calls from lawmakers in both parties to take the action to further punish Russia for its invasion of Ukraine. A bipartisan group of senators last week introduced legislation that would ban the importation of Russian crude oil, petroleum products, liquefied natural gas and coal, and House lawmakers introduced companion legislation this week.
The new import ban comes as fuel prices continue to spike amid broader inflation driving up consumer costs for a host of goods. As of Monday, the U.S. Energy Information Administration put U.S. gasoline prices at over $4.10 a gallon on average, a nearly $0.50 increase from a week earlier and more than $1.30 over prices a year ago.
Enforcers at the state and federal level have been keeping a close eye on prices spiking amid both the Russian invasion of Ukraine and broader supply chain issues driven by the ongoing coronavirus pandemic. New York Attorney General Letitia James, whose office is currently working on a sweeping price-gouging rule, followed Biden's announcement Tuesday with a warning of her own: "This newest round of sanctions could impact New Yorkers, so we are reminding companies that price-gouging is illegal and ensuring that consumers take precautions to protect themselves and their wallets," James said in a statement.
Antitrust watchdogs in the United States, United Kingdom, Canada, Australia and New Zealand also said last month that they are working together to look for any anti-competitive collusion in the global supply chain.
--Additional reporting by James Arkin and Nadia Dreid. Editing by Stephen Berg.
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