Soon after,Britain also announced it would phase out imports of Russian oil and oil products this year,a move Prime Minister Boris Johnson said was aimed at delivering “another economic blow to the Putin regime following their illegal invasion of Ukraine”.
The latest sanctions are designed to target a top source of income to Putin’s economy. But the move is politically dicey,partly because it could further shake global energy markets and cause petrol prices to soar at a time when many Americans are already struggling with record inflation rates and rising prices on everything from fuel and food,to rent and furniture.
Petrol prices in America hit a record high on Tuesday (Wednesday AEDT),reaching an average of $4.17 a gallon (the equivalent of about $1.52 per litre in Australia) amid the Ukraine crisis.
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Speaking at the White House on Tuesday morning (Wednesday AEDT),Biden told Americans that while “freedom would come at a cost”,he would do everything he could to minimise the impact on consumers. He also urged energy companies not to use this decision as an opportunity to profiteer or price gouge.
“Americans have rallied to support the Ukrainian people and made it clear we will not be part of subsidising Putin’s war,” he said.
“Here at home Putin’s war is already hurting American families at the gas pump. Since Putin began his military buildup on Ukrainian borders … the price of gas at the pump in America has gone up 75 US cents ($1.03),and with this action is going to go up further.”