Joe Biden bans Russian oil imports over Ukraine invasion

Joe Biden announced a ban on US imports of Russian oil on Tuesday, the latest effort to cut off foreign revenue as punishment for the invasion of Ukraine.

According to the US Energy Information Administration, Russian oil made up about 3% of all crude shipments to the US last year. Overall, Russian oil and petroleum products represented about 8% of US oil imports.

Natural gas from Russia accounts for one-third of European consumption. The US does not import Russian natural gas.

On the markets, crude oil futures extended gains, rising 4% to $124.21 in New York.

Other legislation under consideration would suspend normal trade relations with Moscow, allowing Biden to levy tariffs on products from Russia and Belarus, Hoyer said. Relations could be restored pending certain conditions, but the majority leader said he did not have additional details.

Before the invasion, Russian oil and gas made up more than a third of government revenues. Global energy prices have surged since the invasion and have continued to rise despite coordinated releases of strategic reserves, making Russian exports even more lucrative.

But rules issued by the US treasury department allowed Russian energy transactions through non-sanctioned banks not based in the US, in an effort to minimize disruption to global energy markets.

Inflation, at a 40-year peak and fueled in large part by gas prices, has hurt Biden politically heading into midterm elections. The invasion of Ukraine has potentially worsened supply chain problems and inflation. Biden previously highlighted Russian energy carve-outs because they would help protect US families and businesses.

The Biden administration is reportedly considering moves to improve relations with Riyadh damaged by the murder of Jamal Khashoggi, a Washington Post journalist, a killing approved by the crown prince, Mohammed bin Salman.