Calls for U.S. to ban Russian oil gain momentum despite inflation concerns

Blinken told CNN host Jake Tapper that the United States is talking to allies about “the prospect of banning the import of Russian oil while making sure that there’s still an appropriate supply of oil on world markets.” He noted in Sunday morning’s “State of the Union” interview that the discussion was taking place “as we speak.”

As recently as Thursday, the White House had played down the possibility of blocking imports from the world’s third-largest energy producer. U.S. oil futures shot up above $125 a barrel on Sunday evening as traders worried about the worldwide effects of such a ban.

“Our objective and the president’s objective has been to maximize impact on President Putin and Russia while minimizing impact to us and our allies and partners,” White House press secretary Jen Psaki told reporters then. “We don’t have a strategic interest in reducing the global supply of energy.”

But on Friday, Psaki said that the Biden administration is “looking at options we could take right now to cut U.S. consumption of Russian energy.”

Last week, Manchin and Sen. Lisa Murkowski (R-Alaska) introduced a bill that would block the importing of Russian oil and gas, which have largely been excepted from sanctions. House Speaker Nancy Pelosi (D-Calif.) has said she supports a ban.

On Sunday, Manchin continued that line.

“The people in my state of West Virginia believe it’s basically foolish for us to keep buying products and giving profit and giving money to Putin to be able to use against the Ukrainian people,” he said on NBC’s “Meet the Press.”

Other Democrats were making the same plea.

“It’s anathema I think to many of us in Congress that while we are sanctioning them and trying to cripple their economy that we would help them in any way by purchasing their petroleum,” Schiff told CBS’s “Face the Nation.”

The European Union has also appeared to pivot after showing reluctance. On Friday the country’s top diplomat, Josep Borrell, said of the issue: “Everything remains on the table.” U.K. Prime Minister Boris Johnson wrote in the New York Times this weekend that Europe must “wean itself off” Russian oil and gas.

During a call with lawmakers on Saturday, Ukrainian President Volodymyr Zelensky pleaded for more support from the United States and its European allies, including by instituting a worldwide ban on the purchase of Russian oil. Zelensky emphasized that cutting off the purchases could be a measure “even more powerful than SWIFT,” according to a Twitter post from Sen. Dan Sullivan (R-Alaska). Zelensky was referring to the critical interbank financial messaging system from which some Russian banks have been banned.

The energy sector is critical to Russia’s economy; the country reportedly earned about $63 billion from international oil and gas sales in the third quarter of 2021, the most recent period for which data is available.

But the United States and its allies will see a fine line between punishing Russia and sparking price hikes. Though the U.S. imports less than 10 percent of its oil from Russia, a ban could accelerate a global blockage of Russian energy sources that would drive up U.S. gas prices even further.

The average price for a gallon of gas in the United States this weekend already topped an average of $4, according to AAA, the first time that’s happened since the aftermath of the 2008 financial crisis. President Biden and other world leaders last week authorized the release of 60 million barrels of oil from their strategic reserves to increase supply.

Senior U.S. officials flew to Venezuela this weekend to meet with President Nicolás Maduro’s government to discuss a range of issues in a visit the New York Times reported Sunday. The United States severed diplomatic ties with Venezuela in 2019 after allegations of electoral fraud in the country, and it has heavy sanctions in place on the oil-rich nation.

Some pundits and former lawmakers say a restart could help ease oil-supply concerns even as Venezuela itself has in recent years forged closed economic and political ties with Russia.

A senior administration official, who spoke on the condition of anonymity because the person was not authorized to discuss the matter on the record, confirmed to The Washington Post that a U.S. delegation was in Venezuela on Sunday. The White House declined to say whether the White House is considering jump-starting oil imports as part of those talks.

Some lawmakers said the United States had the capacity to make up for Russian purchases by tapping energy reserves at home.

“We have more than enough ability in this country to produce enough oil to make up for the percentage we buy from Russia,” Rubio said on “This Week with George Stephanopoulos.” He said the notion that banning Russian oil would lead to a rise in gas prices for American consumers was an “admission” that Russian President Vladimir Putin has leverage even as he is waging an unprovoked war.

Manchin noted the United States’ “ability to ratchet up and be able to backfill. We have the energy, we have the resources here. And we have the technology.”

Higher gas prices could strengthen the GOP’s campaign for taking control of Congress in the 2022 midterms: Republican candidates have said the Biden administration is presiding over drastic inflation.

Even as some congressional Democrats have supported a ban on Russian oil, they question whether the effect may be overstated. If a ban is imposed, Schiff said Sunday, Russia “will probably find somewhere else to sell that oil and gas to.”