U.S. bans Russian oil imports

President Joe Biden announced Tuesday that Americans can expect even higher prices at the gas pump as the U.S. halts all imports of Russian oil. “We will not be part of subsidizing Putin’s war,” he said. “Defending freedom is going to cost.” Following his announcement, the price for a barrel of U.S. crude rose more than 5% to $130 as the average price of regular unleaded shot up to $4.17 per gallon, passing records set in 2008. The Brent crude, the international standard, climbed 3.4% to just over $127 per barrel.

What effect will this have? According to the U.S. Energy Information Administration, the U.S. imported roughly 245 million barrels of crude oil and petroleum from Russia in 2021, only about 8% of total imports. The European Union gets 40% of its gas from Russia, but leaders are expected to meet later this week to begin phasing out reliance on Russian fuel by 2030. The U.K. announced Tuesday that it will stop importing  Russian oil by the end of this year. A U.S.-only ban is not likely to drastically affect Russia’s economy, but the restrictions will impede cash flow and reduce the price per barrel of Russian oil.

Dig deeper: Read Mary Muncy’s report in The Sift about global businesses boycotting Russia.