US lawmakers seek to restrict trade with Russia; fluctuations in oil prices; markets plummet
US House Speaker Nancy Pelosi said the House of Representatives is studying legislation to further isolate Russia from the global economy, including a ban on its oil and energy imports to the US.
Amid rising U.S. gasoline prices, the Biden administration has yet to call for a ban on oil imports to Russia.
In a letter to Democrats released Sunday night, Pelosi says the law in question would also end normal trade relations with Russia and Belarus and begin the process of denying Russia access to the World Trade Organization.
Pelosi says the House of Representatives will also authorize the Biden administration to raise tariffs on Russian imports.
Congress intends to approve the Biden administration’s request for $10 billion in humanitarian, military, and economic support for Ukraine, Pelosi said, as part of omnibus government funding legislation this week.
The price of Brent North Sea crude, the European benchmark, soared to nearly a 14-year high of $140 due to the war in Ukraine, approaching an all-time high of $147.50.
The price of a barrel of Brent crude has risen 33% since Russia invaded Ukraine on February 24.
US Secretary of State Anthony Blinken says Washington is “actively negotiating” with European countries to ban Russian oil imports, though it has not declared an outright boycott.
Even if oil is technically still not subject to sanctions, Russian oil exporters are struggling to find buyers. Shell is one of the few companies that still buys Russian oil, although it says it will donate profits to the needs of Ukraine.
The price of gold rises to over $2,000 in Asian trade as investors flee into the safe haven asset. The price of gold is at its highest level since September 2020.
As stock markets open after the weekend in Asia, Japan’s benchmark Nikkei 225 falls more than three percent.
The Hang Seng Index in Hong Kong fell by more than four percent.
US benchmark S&P futures are down more than 1.5%.
Two of the Big Four international accounting firms are pulling out of Russia.
KPMG and PricewaterhouseCoopers say they will end their relationship with their Russian member firms. KPMG announced that it is also leaving Belarus.
KPMG International said in a statement that pulling Russian and Belarusian firms out of the network would be “incredibly difficult.” KPMG has over 4,500 employees in both countries.
PricewaterhouseCoopers says its firm PwC in Russia has 3,700 employees and is working on an “organized transition” of the business.
The other two Big Four companies, Deloitte and Ernst & Young, did not immediately respond to Associated Press requests for comment.