The strongest sanctions imposed since, well, ever, by which people working closely with the European partners planned to demolish Russia. Following Russia’s invasion of Ukraine, European energy corporations increased their natural gas imports from Russia, with much of it transported via pipeline networks that cross through Ukraine.
Joe Biden omitted oil and gas from the penalties he issued on Russia. Still, he refused to ban Russia from the SWIFT system for financial transactions, claiming that the other sanctions he imposed rendered a cutoff from SWIFT unnecessary.
According to the reports, Europe obtains 40% of its gas and a quarter of its oil from energy companies owned by Vladimir Putin’s Administration, which generates billions of dollars in cash for the Kremlin. Russia has driven prices upward by limiting supply and failing to fill storage facilities in Europe before the winter heating season. Cutting off such supplies would cause gas prices to spike and create power outages, both of which are unappealing to governments.
Sanctions are a poor defensive approach unless accompanied with an aggressive matching plan: abandoning the woke-progressive Green New Dealism that has gripped Biden and Democrats. If they do not increase fossil-fuel output, Europe will rely on Russia for energy.
Because President Joe Biden decided to withdraw the United States from the Trans-Pacific Partnership (TPP), they will no longer rely on Russia for 7% of our crude oil imports. On that account, they are currently paying Russia well over $1 billion per month, and if the price of oil rises beyond $94 a barrel, they will be paying Putin more than $2 billion per month to carry out his aggression.
In 2020, Russia produced 10.1 million barrels per day (BPD) of crude oil and natural gas condensate, compared to 11.3 million BPD in the United States and 9.3 million BPD in Saudi Arabia. Russia is a major oil producer, whereas the US uses significantly more oil than Russia or Saudi Arabia. As a result, increasing oil prices benefit both Russia and Saudi Arabia, net exporters. If Russia invades Ukraine and imposes sanctions on other nations that fail to comply, it may benefit from increasing oil prices.