Biden administration “has no strategic interest” in sanctioning Russian oil, White House says

The administration declined to rule it out completely, but said it was not in the US’s strategic interest, citing disruptions in global oil supplies and the effect it would have on gas prices.

“We have no strategic interest in reducing global energy supplies,” Deputy Chief of Staff Carin Jean-Pierre told reporters aboard Air Force One.

Jean-Pierre said such sanctions “will raise gas prices for Americans”, something the White House “knows a lot about”.

She praised US companies that had severed ties with Russia and said the administration welcomed the reports.

But Jean-Pierre said the administration is more strategically focused on the impact on Russia’s energy status over time.

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“We and our allies and partners have a strong collective interest in deteriorating Russia’s status as a leading energy supplier over time. That is why we are talking about diversification. That is why we are stopping Nord Stream 2. That is why we are helping to accelerate the diversification of Russian gas. That is why we deny the critical technological resources that Russia needs to maintain its oil and gas production capacity, “she said.

These more moderate comments come after President Joe Biden Biden said sanctioning Russian oil exports remains an option.

“Nothing is on the table,” Biden said when he was pressured to sanction Russian oil exports earlier Wednesday.

White House spokeswoman Jen Psaki also said the US option to sanction Russian oil exports was “still on the table” earlier Wednesday.

However, taking such a step would be an exceptional measure that could have an intense effect on domestic gas prices, and Psaki has made it clear that the White House’s top priority is to minimize the impact at home.

“What (Biden) doesn’t want to do is bring down global oil markets or the global market, or influence the American people more with higher energy and gas prices,” Psaki told CNN’s John Berman on New Day. “.

“It’s something that weighs a lot. It’s still on the table. It’s not off the table. But again, that’s how the president sees it as we announce and take further steps,” she added.

The United States has already announced a series of sanctions against Russia and President Vladimir Putin following the country’s unprovoked invasion of Ukraine last week. But the unprecedented step of sanctioning oil experts is likely to lead to a sharp rise in prices, inflicting a painful blow on consumers around the world, as Russia is the world’s number two oil producer.

Although the United States consumes very little Russian oil – Russia imported just 90,000 barrels a day in December – the interconnected global market means supply shocks in parts of the world could affect prices everywhere.

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The comments come as the United States and other countries struggle for stable gas prices at home as the crisis enters its second week. On Tuesday, the White House and the International Energy Agency announced that the United States and its allies had agreed to release 60 million barrels of oil from their reserves, a move that the IEA aims to send “a strong message to global oil markets that there will be no there is a shortage “as a result of the Russian invasion of Ukraine.

Prices rose even higher on Wednesday as world crude oil prices rose to over $ 110 a barrel and natural gas prices jumped to a new European record as Russia’s escalating military campaign in Ukraine sparked market fears. .

Despite rising prices, members of the Organization of the Petroleum Exporting Countries and Russia have agreed to stick to their current plan to gradually increase production by just 400,000 barrels a day.

The cartel said in a statement that “the current fundamentals of the oil market and the consensus on its prospects point to a well-balanced market and that the current instability is not caused by changes in market fundamentals but by current geopolitical developments.” on March 31.

Echoing Psaki, Vice President Kamala Harris said on Wednesday that “everything is on the table” as the United States evaluates economic sanctions against Russia, and went on to stress that the United States will not send troops to fight Russian forces in Ukraine.

“What we will continue to do is stand firm with our allies to reassess what we are doing with sanctions. It’s all on the table, frankly,” she told NBC News.

This story was updated with additional developments on Tuesday morning.

CORRECTION: An earlier version of this story and its title misrepresented the nature of the possible actions the White House could take against Russian oil.

Kate Sullivan and Matt Egan of CNN contributed to this report.