US sanctions on Russia not targeting energy markets – State Department officials

An oil pump is seen at sunset outside Scheibenhard, near Strasbourg, France, on October 6, 2017. Reuters/Christian Hartmann

Register now for free unlimited access to Reuters.com

register

WASHINGTON, Feb 22 (Reuters) – Actions that the Biden administration took on Tuesday and may soon punish Russia’s economy over its aggression in Ukraine are not intended to affect global energy markets, the US said. A senior State Department official said.

Western countries on Tuesday imposed new sanctions on Russian banks and oligarchs after Moscow ordered troops into separatist regions of eastern Ukraine. read more

“The sanctions being imposed today, as well as those that may be imposed in the near future, are not targeted and will not target oil and gas flows,” the official, who spoke to reporters on condition of anonymity, said. “We want the market to note that there is no need to raise the price for the time being.”

Register now for free unlimited access to Reuters.com

register

Crude oil prices climbed closer to $100 a barrel after Moscow ordered troops into two separate areas in eastern Ukraine, despite efforts by the Biden administration to keep oil markets calm.

The official said that nothing is happening in Ukraine right now nor is it expected to affect the flow of oil in the global markets in the coming days.

The official said US officials are working with the oil producing countries of the Organization of the Petroleum Exporting Countries (OPEC) and with large oil-consuming countries, if needed, to calm energy markets.

“We will be prepared to act quickly to address any spike in price as a result of grassroots impact or increased political risk,” the official said. “We’re not there at the moment.”

The Biden administration has said all options are on the table for taking action against Russia, including sanctioning entities that could affect energy. But the administration is worried it could raise fuel prices for consumers ahead of congressional elections later this year.

serious trouble

When oil prices were high last November, US officials said they worked for the first time with oil-consuming countries including China, South Korea, Japan and India to coordinate releases from strategic oil supplies in each country. Can go But so far only the United States has released large amounts of oil from its Strategic Petroleum Reserve. read more

“We are ready for global action if needed,” the official said. “It’s a different scenario from what we had in November because we are now in a serious crisis in Ukraine.” The official did not say whether further commitments have been made to exploit the oil reserves.

Amos Hochstein, President Joe Biden’s special envoy on global energy security, and Brett McGurk, the Coordinator for the Middle East and North Africa, discussed energy market pressures with Saudi officials last week.

The official said of those talks with Saudi officials, “We wanted to make sure that we are coordinating … we share a mutual interest in ensuring that markets are balanced and stable and that there is sufficient supply.” ” “We didn’t discuss increasing (oil) production.”

Clearview Energy Partners, a nonpartisan research group, said Russian President Vladimir Putin could counteract the sanctions by taking actions Moscow could possibly deny. This probably includes cutting oil and gas exports, but also requiring facility maintenance, damage from military conflict or blaming cyberattacks by the West.

“If those actions are taken, we will be ready to respond,” the US official said.

Register now for free unlimited access to Reuters.com

register

Reporting by Timothy Gardner; Editing by Richard Pullin

Our Standards: Thomson Reuters Trust Principles.

Source