The United States (US) and United Kingdom (UK) are banning Russian oil and the European Union (UN) is ending its reliance on Russian gas, stepping up the economic sanctions in response to the invasion of Ukraine.
US President Joe Biden said the move targeted “the main artery of Russia’s economy” energy exports are a vital source of revenue for Russia but the isolation imposed by the EU is also likely to impact Western consumers.
Major brands have continued to pull out of Russia, with McDonald’s and Coca-Cola the latest to leave.
Russia’s economy is heavily dependent on energy, About 8% of US oil and refined product imports come from Russia, while Russia makes up about 6% of the UK’s oil imports. It is the world’s third-biggest oil producer, also Saudi Arabia and the US.
Before the measures were announced, Russia warned of “catastrophic” consequences for the global economy and said it might close its main gas pipeline to Germany.
The US President Joe Biden’s announcement cited that US and America will no longer use the Russian oil and gas.
“We’re banning all imports of Russian oil and gas and energy,” he said.
“That means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to President Vladimir Putin.”
Russia later announced plans to ban the exports of certain commodities and raw materials. The details are still to be worked out, but Russia is a major exporter of grain and metals.
Russian banks have been cut off from global payment networks and Germany suspended the Nord Stream 2 pipeline, which would have transported more gas from Russia to Germany.
Meanwhile, the oil and gas crisis in Russia has impacted African countries, Zimbabwe among them is already facing fuel challenges as the prices increased.
