Europe must reduce its dependence on Russian energy without driving up prices around the world, advises Treasury Secretary Joe Biden.
The words may have surprised. The United States warns its European allies about the risks of a total embargo on Russian oil and gas. While pressure is strong in Congress and in American public opinion to cut off all foreign exchange earnings that allow Vladimir Putin’s regime to wage war in Ukraine, Janet Yellen, Joe Biden’s Treasury Secretary, presents a nuanced perspective On the question.
A European embargo would clearly drive up world oil prices, it would have a damaging impact on Europe and other parts of the world, she explained Thursday in Washington after meeting her Ukrainian counterpart, Serhiy Marchenko.Paradoxically, the embargo would actually have very little negative impact on Russia, because if Russia were to export less, the price it would get from its exports would increase.“.
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“Europe clearly needs to reduce its dependence on Russia for energy, but we must be careful when considering a complete European embargo, for example on oilsums up the former American central banker who became a minister.
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The United States, like Canada, quickly banned energy imports from Russia, before extending this embargo to all other types of products. But this was only possible because North America depends very little on Russia for energy and trade. Russia in 2020 exported 260 million tons of oil. 53% were sold to European countries. About a quarter of Europe’s oil needs are met by Russia.