Joe Biden announces ban on Russian oil and gas imports
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Russian President Vladimir Putin and Chinese counterpart Xi Jinping are looking to increase their gas trade exponentially with the development of three gas pipelines that will flow from Russia to China. This comes as the rest of the world severs all ties with Russia after its President Vladimir Putin ordered his troops to invade Ukraine. Earlier today, the UK, the EU and the US joined together to pull the plug on all Russian oil and gas in a major show of strength against Putin.
Speaking at the Business, Energy and Industrial Strategy Committee, Mike Bradshaw, professor of global energy at the University of Warwick, said: “I’d just like to point out that Russia and China do have a gas pipeline- The Power of Siberia pipeline.
“In actual fact back in early February when Putin was in Beijing for the Olympics, they signed a deal on another pipeline to come from Sakhalin islands.
“They’re now in discussions for a third pipeline, the so-called Power of Siberia 2.”
These new gas deals will provide a lifeline to Putin, who is facing an economic crisis after western powers sanctioned large parts of the Russian economy, including targeting banks.
On Tuesday, the European Commission published plans to reduce the bloc’s dependency on Russian oil and gas by two thirds this year, as Russian troops invade Ukraine.
The EU, which is heavily dependent on Moscow for its energy needs, has promised to end its reliance on Russian fuel “well before 2030”.
However, Mr Bradshaw noted that an increased gas flow to Russia could have its advantages for the rest of the world.
Referring to Russia’s shift in attention to China, he said: “So there is this pivot, but ironically that is not bad news if it means more pipeline gas is going to China.
“They’ll get a good deal on it no doubt, but it means that they’re using less LNG which will be beneficial to others trying to pivot to LNG.”
This also suggests this deal will help China, which uses half of the world’s coal today, shift to a less polluting fossil fuel source before it can fully transition to net zero.
Along with the EU, the UK and US have also announced a shift away from Russian oil and gas.
Business Secretary Kwasi Kwarteng shared the announcement on Twitter, saying: “NEW – the UK will phase out the import of Russian oil and oil products by the end of 2022.
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“This transition will give the market, businesses and supply chains more than enough time to replace Russian imports – which make up eight percent of UK demand.”
At a White House address, Mr Biden said: “We’re banning all imports of Russian gas, oil and energy.
“Russian oil will no longer be accepted at US ports. We will not be part of subsidising Putin’s war.”
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