Biden qualifies new Russia sanctions threat
The US has prepared a strong suite of sanctions against Russia to persuade it not to invade Ukraine again, but still has work to do to persuade allies in Europe to match the US action, President Joe Biden said today.
The US course of action also depends on what steps Moscow will take, Biden said at a press conference marking his first year in office.
"It is one thing if it is a minor incursion, and then we end up having a fight about what to do and not do," Biden said. "But if they actually do what they are capable of doing with the force amassed on the border, it is going to be a disaster for Russia."
Washington has accused Moscow of placing more than 100,000 troops on the border with Ukraine, and preparing to also station troops in Belarus next month under the guise of a military exercise, in preparation for a ground invasion of Ukraine. The US sanctions in the works are financial in nature, aiming to cut the largest Russian banks from the US dollar-based global financial system, but Russian oil and gas exports are a potential target as well.
"Everybody talks about how Russia has control over the the energy supply that Europe absorbs," Biden said. "Well, guess what? That money that they earned from that makes about 45pc of their economy. I don't see that as a one way street."
Russia denies plans to invade Ukraine, but rising tensions and discussion of a hypothetical invasion and threats of US sanctions have already affected European gas and oil products markets.
Biden acknowledged potential collateral damage from the imposition of US sanctions. "I want to be clear with you — the serious imposition of sanctions relative to dollar transactions and other things are going to have a negative impact on the US, as well as a negative impact on the economies of Europe and a devastating impact on Russia."
The US is working to ensure that its allies in Europe are on the same page when it comes to the threat of sanctions, he said. The US will proceed with sanctions "if there is something, that is, if Russian forces are crossing the border, killing Ukrainian fighters, etc — I think that changes everything," Biden said. "But it depends on what (Russian president Vladimir Putin) does, and to what extent we are going to be able to get total unity on the NATO front."
Despite the threat of sanctions, Biden said he expected Russia to still take some form of military action against Ukraine, prompting the White House to later add a clarification to his remarks. "President Biden also knows from long experience that the Russians have an extensive playbook of aggression short of military action, including cyberattacks and paramilitary tactics," the White House said. "And he affirmed today that those acts of Russian aggression will be met with a decisive, reciprocal, and united response."
Biden at the same time said he still hoped that US-Russian diplomacy could succeed in lowering the tensions. A round of direct US-Russian talks and broader discussions with NATO allies earlier this month accomplished little, but US and Russian foreign ministers plan to meet in Geneva, Switzerland on 21 January to continue negotiations.
In what Moscow is likely to interpret as a positive signal, Biden indicated today that he is willing to offer a compromise solution on a set of "security guarantees" Putin has asked for — the Kremlin's code for non-interference on its western borders. Moscow's demand for a written guarantee that Ukraine will never join NATO is a non-starter, but "there is room to work if he wants to do that," Biden said.
"The likelihood that Ukraine is going to join NATO in the near term is not very likely, based on much more work they have to do in terms of democracy and a few other things going on," Biden said, citing opposition from some NATO members to Ukraine's admission.
Related news posts
LNG Energy eyes sanctions-hit Venezuela oil blocks
LNG Energy eyes sanctions-hit Venezuela oil blocks
Caracas, 25 April (Argus) — A Canadian firm plans to revive two onshore oil blocks in Venezuela, but the conditional deals signed with struggling state-owned PdV come just as the US is reinstating broad sanctions on the South American country. LNG Energy Group's Venezuela unit agreed two deals with PdV to boost output in five fields in the Nipa-Nardo-Niebla and Budare-Elotes blocks, which produce about 3,000 b/d of light- to medium-grade crude, the company said on Wednesday. The Canadian company, which operates in neighboring Colombia, would receive 50-56pc of production of the blocks. Venezuela's oil ministry declined to comment. But finalizing the contracts depends on providing required investment to develop the fields within 120 days of the contract signing on 17 April, LNG Energy said. And the signing came on the same day as the US reimposed oil sanctions on Venezuela and gave most companies until 31 May to wind down business. LNG Energy Group said it intends to comply with existing and upcoming US sanctions, noting that the conditional contracts were executed within the terms of the temporary lifting of sanctions — general license 44 — but it will abide by the new license 44A. The reimposition of US sanctions on Venezuela prohibits new investment in the country's energy sector, at the threat of US criminal and economic penalties. "The company will assess in the coming days the applicability of license 44A to its intended operations in Venezuela and determine the most appropriate course of action," LNG Energy said. "The company intends to operate in full compliance with the applicable sanctions regimes." The two blocks are in the adjacent Anzoategui and Monagas states, part of the Orinoco extra heavy oil belt. Most of Venezuela's output is medium- to heavy-grade crude. Both PdV and Chevron have drilling rigs working in those two states, in separate workover and drilling campaigns. Venezuela is now producing above 800,000 b/d, after the US allowed Chevron to increase production and investment under separate waivers. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US economic growth slows to 1.6pc in 1Q
US economic growth slows to 1.6pc in 1Q
Houston, 25 April (Argus) — The US economy in the first quarter grew at a 1.6pc annual pace, slower than expected, while a key measure of inflation accelerated. Growth in gross domestic product (GDP) slowed from a 3.4pc annual rate in the fourth quarter, the Bureau of Economic Analysis (BEA) reported on Thursday. The first-quarter growth number, the first of three estimates for the period, compares with analyst forecasts of about a 2.5pc gain. Personal consumption slowed to a 2.5pc annual rate in the first quarter from a 3.3pc pace in the fourth quarter, partly reflecting lower spending on motor vehicles and gasoline and other energy goods. Gross private domestic investment rose by 3.2pc, with residential spending up 13.9pc after a 2.8pc expansion in the fourth quarter. Government spending growth slowed to 1.2pc from 4.6pc. Private inventories fell and imports rose, weighing on growth. The core personal consumption expenditures (PCE) price index, which the Federal Reserve closely follows, rose by 3.7pc following 2pc annual growth in the fourth quarter, although consultancy Pantheon Macroeconomics said revisions to the data should pull the index lower in coming months. The Federal Reserve is widely expected to begin cutting its target lending rate in September following sharp increases in 2022 and early 2023 to fight inflation that surged to a high of 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s Gail to shut Dabhol LNG terminal for monsoon
India’s Gail to shut Dabhol LNG terminal for monsoon
Mumbai, 25 April (Argus) — Indian state-controlled gas distributor Gail is planning to shut its 5mn t/yr Dabhol LNG terminal on the west coast from 15 May, ahead of monsoon rains. Gail will also stop importing LNG from mid-May at the terminal, a company official told Argus . This is because of the lack of a breakwater facility at the terminal, which prevents it from anchoring ships in turbulent seas. The breakwater facility was expected to be completed in January, but the cause of the delay is unknown. The terminal is likely to resume operations from the end of September, similar to its plans in 2023 , as this shutdown over the monsoon season is routine. Gail is set to receive a total of 139,635t LNG at the Dabhol terminal in May, which will arrive in two separate shipments from the US' 5.75mn t/yr Cove Point export facility. Both cargoes will be the last that the terminal will receive before it shuts in mid-May. It has received 583,326t of LNG at the terminal since the beginning of the year, lower by 4pc on the year, data from market analytics firm Kpler show. The Dabhol terminal only receives about 2.9mn t/yr of LNG, despite having a nameplate capacity of 5mn t/yr, because it is not used during the monsoon season. Gail intends to gradually increase the capacity of the Dabhol terminal to 12mn t/yr by April 2030–March 2031. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
Houston, 24 April (Argus) — Barges are facing lengthy delays at the Algiers lock near New Orleans as vessels reroute around closures at the Port Allen lock and the Algiers Canal. Delays at the Algiers Lock —at the interconnection of the Mississippi River and the Gulf Intracoastal Waterway— have reached around 37 hours in the past day, according to the US Army Corps of Engineers' lock report. Around 50 vessels are waiting to cross the Algiers lock. Another 70 vessels were waiting at the nearby Harvey lock with a six-hour wait in the past day. The closure at Port Allen lock has spurred the delays, causing vessels to reroute through the Algiers lock. The Port Allen lock is expected to reopen on 28 April, which should relieve pressure on the Algiers lock. Some traffic has been rerouted through the nearby Harvey lock since the Algiers Canal was closed by a collapsed powerline, the US Coast Guard said. The powerline fell on two barges, but no injuries or damages were reported. The wire is being removed by energy company Entergy. The canal is anticipated to reopen at midnight on 25 April. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more