The United States and the United Kingdom have banned the importation of oil and gas from Russia.
The announcement comes after the European Union Commission said it would reduce EU demand for Russian gas due to the invasion of Ukraine.
The EU relies on Russia for 40 per cent of its gas. Around six per cent of UK oil imports come from Russia, while the US depends on Russia for eight per cent of oil and refined products.
The UK Prime Minister, Boris Johnson said on Tuesday that, “In another economic blow to the Putin regime following the illegal invasion of Ukraine, the UK will move away from dependence on Russian oil throughout this year, building on our severe package of international economic sanctions.
He added, “Working with industry, we are confident that this can be achieved over the course of the year, providing enough time for companies to adjust and ensuring consumers are protected.”
On Monday, crude oil prices rose $139 per barrel following the conflict between Ukraine and Russia.
In a tweet, the US President, Joe Biden said the ban would lead to a rise in oil prices.
He said, “This decision today is not without costs here at home. Putin’s war is already hurting American families at the pump — and this will drive up costs further. So, I will take every step we can to minimize Putin’s price hike here at home.
“In coordination with our partners, we have already announced a collective release of 60 million barrels of oil from our Strategic Petroleum Reserves — half of that from the United States.
“We’re taking steps to ensure a reliable supply of global energy. And we’re going to keep working with every tool at our disposal to protect American families and businesses.
“Let me say to the oil and gas companies and finance firms that back them: We understand that Putin’s war against the people of Ukraine is causing prices to rise. But that is no excuse for excess price increases, or padding profits, or any kind of effort to exploit this situation.”
“The ban on Russian oil and gas has strong bipartisan support in the Congress and in the country.
“Americans have rallied to support the people of Ukraine and made it clear we will not be part of subsidizing Putin’s war.”