Ban on Russian Oil Imports Allows Deliveries From Contracted Purchases

No new purchases of Russian oil, liquefied natural gas or coal can be made by American parties, starting March 8, the White House said. But, there will be a 45-day wind-down period where deliveries from contracted purchases can enter the U.S., a senior government official said. The Treasury Department issued a general license outlining the details.

The announcement of the import ban by President Joe Biden, who signed an executive order under the authority of the International Emergency Economic Powers Act and the National Emergencies Act, was greeted enthusiastically by Ukrainian President Volodymyr Zelensky, who tweeted his support.

Biden said during a speech at the White House that while the U.S. coordinated with Europe before making the announcement, he knows that many European countries "may not be in a position to join us. The United States produces far more oil domestically than all of European -- all the European countries combined. In fact, we’re a net exporter of energy. So we can take this step when others cannot," he said. The executive order covers more than an import ban; it also bans new investment in Russia's energy sector, including participating in foreign investments in that sector.

Senate Republicans criticized Biden, saying that he only acted because Congress was going to show him up by passing legislation to achieve the same ends. Sen. Joni Ernst, R-Iowa, said at a press conference in the Capitol, "While I do support the president’s decision not to allow Russian energy into the country any longer, it is long overdue."

Sen. John Barasso, R-Wyo., cited a video call with Zelensky over the weekend as motivating Congress to act on an import ban. "Up until today, Joe Biden has been an eager purchaser of Russian energy," he said. "The reckless energy policies of this administration are dictated by the climate elititsts who call the tune for the Democrat party. That's one of the reasons we have 40-year-high inflation right now in the United States."

The likelihood that an oil ban would push oil prices higher was one of the reasons the administration hesitated to endorse such a ban.

Biden tried to get ahead of those arguments during his speech, saying that oil companies had thousands of leases on public lands they were not drilling on, and that 90% of domestic oil production is not on public land.

"[I]t’s simply not true that my administration or policies are holding back domestic energy production. That’s simply not true," he said. " Even amid the pandemic, companies in the United States pumped more oil during my first year in office than they did during my predecessor’s first year."

On the left, Sen. Ed Markey, D-Mass., who introduced a bill to ban Russian energy imports, issued a statement that said, “This moment is a clarion call for the urgent need to transition to domestic clean energy so that we are never again complicit in fossil-fueled conflict. We can begin by passing $555 billion climate and clean energy provisions to supercharge the solar, wind, offshore wind, electric vehicle, battery revolution that will be union-made in America and free us once and for all from the shackles of fossil fuels.”