{"id":1357917,"date":"2022-03-04T06:10:00","date_gmt":"2022-03-04T11:10:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1357917"},"modified":"2022-03-04T07:55:00","modified_gmt":"2022-03-04T12:55:00","slug":"until-joe-biden-lets-u-s-oil-freely-flow-hes-complicit-in-putins-war-crimes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/until-joe-biden-lets-u-s-oil-freely-flow-hes-complicit-in-putins-war-crimes\/","title":{"rendered":"Until Joe Biden Lets U.S. Oil Freely Flow, He\u2019s Complicit In Putin\u2019s War Crimes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Funtil-joe-biden-lets-u-s-oil-freely-flow-hes-complicit-in-putins-war-crimes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1357917&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/03\/pipeline-e1646264795767.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>As Russia continues its invasion of Ukraine, the United States and western allies have imposed a new round of economic sanctions. But these won\u2019t achieve the desired effect as long as there is a carve-out for Russia\u2019s energy sector.\u00a0<\/p>\n<p><a>Last week, the U<\/a>nited States <a href=\"https:\/\/abcnews.go.com\/Politics\/biden-announces-stepped-sanctions-russian-banks-elites-putin\/story?id=83085065\" target=\"_blank\" rel=\"noreferrer noopener\">imposed sanctions<\/a>\u00a0on four large Russian banks and restricted certain Russian state-owned enterprises from raising money in international markets. On Monday, the U.S., the European Union, and the United Kingdom took an extraordinary step to\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/u-s-is-levying-sanctions-against-russias-central-bank-11646052061\" target=\"_blank\" rel=\"noreferrer noopener\">sanction Russia\u2019s central bank<\/a>, the Bank of Russia, preventing it from moving assets it held abroad to stabilize Russia\u2019s economy, or \u201cusing other government and private banks to manage central bank operations.\u201d Additionally, the U.S. Department of Treasury prohibited Americans from doing business with Russia\u2019s central bank, finance ministry, and Russia\u2019s sovereign wealth fund. No country\u2019s central bank had ever been sanctioned like this before. According to officials from the Biden administration, these latest sanctions targeting Russia\u2019s banking and financial systems represent the West\u2019s \u201cbiggest sanctions campaigns in the past half-century.\u201d<\/p>\n<p>Consequently, the Russian ruble\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/russias-ruble-financial-markets-are-hammered-by-sanctions-11646038133\" target=\"_blank\" rel=\"noreferrer noopener\">tumbled<\/a>\u00a0more than 20 percent. At the market close on Monday, one ruble was worth less than 1 cent. The ruble\u2019s devaluation will negatively affect Russia\u2019s economy in many ways. It will worsen the country\u2019s already high inflation (Russia\u2019s inflation rate was 8.7 percent in January 2022), lower the living standard, and make it hard for Russian companies to raise capital for existing business operations or future expansion. <\/p>\n<p>The ruble\u2019s devaluation also hurts consumer confidence and may even cause a run on the bank. Nervous Russians\u00a0<a href=\"https:\/\/www.pbs.org\/newshour\/world\/russians-line-up-at-banks-as-currency-plummets-in-face-of-sanctions\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly<\/a>\u00a0lined up outside of banks and ATMs to get their money out, a scene the country hadn\u2019t seen since the fall of the former Soviet Union in 1989.\u00a0<\/p>\n<p>In response, the Bank of Russia was forced to raise the interest rate from 9.5 percent to 20 percent and close the country\u2019s stock market for this week. The central bank also\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/russias-ruble-financial-markets-are-hammered-by-sanctions-11646038133\" target=\"_blank\" rel=\"noreferrer noopener\">ordered<\/a>\u00a0Russian companies to sell 80 percent of their foreign-currency revenue. The move was designed to stop the ruble from falling further by creating artificial supply-demand and giving the central bank access to foreign currencies such as U.S. dollars. The ruble bounced back some the next day due to these measures. As of Tuesday morning, one ruble was worth 8.6 cents.\u00a0\u00a0<\/p>\n<h2 id=\"energy-sector-exempt\">Energy Sector Exempt<\/h2>\n<p>No doubt, the latest round of western sanctions has caused some damage to Russia\u2019s economy. But they are not as effective as they could have been because Russia\u2019s energy sector is\u00a0<a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/carve-out-in-u-s-sanctions-will-still-let-russia-profit-from-oil-gas\/ar-AAUo060\" target=\"_blank\" rel=\"noreferrer noopener\">exempted<\/a>. Russia\u2019s energy companies continue to export oil and gas worldwide, making phenomenal profit due to skyrocketing energy prices, and evade sanctions by bringing badly needed foreign currencies back to Russia.\u00a0<\/p>\n<p>The energy sector plays the most vital role in Russia\u2019s economy, which is about the size of South Korea\u2019s. Russia\u2019s energy sector accounts for <a href=\"https:\/\/www.indiatimes.com\/explainers\/news\/russias-energy-in-global-economy-and-what-its-mean-for-indian-economy-563119.html\">14 percent<\/a> of the country\u2019s GDP. The country is the world\u2019s largest natural-gas exporter and one of the main oil suppliers. Revenue from the energy sector has helped Russia accumulate <a href=\"https:\/\/www.indiatimes.com\/explainers\/news\/russias-energy-in-global-economy-and-what-its-mean-for-indian-economy-563119.html\">$630 billion<\/a> in foreign exchange reserves in recent years and contributed to more than <a href=\"https:\/\/www.indiatimes.com\/explainers\/news\/russias-energy-in-global-economy-and-what-its-mean-for-indian-economy-563119.html\">40 percent<\/a> of the country\u2019s federal budget. <\/p>\n<p>A <a href=\"https:\/\/finance.yahoo.com\/news\/russias-economy-would-be-hit-hardest-by-energy-sanctions-with-little-toll-on-eu-think-tank-212606002.html\">study<\/a> by the Kiel Institute for the World Economy, a think tank based in Germany, shows that an \u201cembargo on gas would drag Russia\u2019s GDP down by nearly 3 percent and halting imports and exports of crude oil would result in a slump of more than 1 percent.\u201d However, by leaving Russia\u2019s energy sector alone, current western sanctions may knock out Russia\u2019s GDP by only <a href=\"https:\/\/www.cnn.com\/2022\/02\/22\/business\/sanctions-russia-ukraine\/index.html\">1 percent<\/a>.<\/p>\n<h2 id=\"justifying-the-exemption\">Justifying the Exemption<\/h2>\n<p>President Biden <a href=\"https:\/\/www.msn.com\/en-us\/money\/markets\/carve-out-in-u-s-sanctions-will-still-let-russia-profit-from-oil-gas\/ar-AAUo060\">defended<\/a> the carve-out of Russian energy from sanctions as necessary \u201cto limit the pain the American people are feeling at the gas pump.\u201d Under his watch, gas prices have skyrocketed <a href=\"https:\/\/www.cbsnews.com\/news\/inflation-gas-food-prices-increase\/\">60 percent<\/a>, and the United States has <a href=\"https:\/\/townhall.com\/tipsheet\/juliorosas\/2022\/03\/01\/politifact-falls-flat-on-its-face-trying-to-fact-check-maria-bartiromo-n2603958\">doubled<\/a> the amount of crude oil imports from Russia last year. <\/p>\n<p>Although imports from Russia account for only 3 percent of overall U.S. crude oil imports in 2021, the United States is on track to become more dependent on Russia\u2019s oil as President Biden doubles down on his <a href=\"https:\/\/www.foxbusiness.com\/economy\/biden-energy-policies-inflation-oil-gas\">war on the U.S. energy industry<\/a> to advance \u201cgreen energy.\u201d <\/p>\n<p>President Biden said another reason for exempting Russia\u2019s energy sector from sanctions is to maintain the economic stability of our European allies, which are far more exposed to Russia\u2019s energy industry due to their ongoing crusade against fossil fuels. About 30 percent of the European Union\u2019s gas imports and 35 percent of its oil imports come from Russia.\u00a0<\/p>\n<p>Germany, the largest economy in the European Union, is even more vulnerable \u2014 36 percent of its natural gas imports and close to 40 percent of its oil imports come from Russia. After Russia invaded Ukraine, Germany\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/germanys-scholz-halts-nord-stream-2-certification-2022-02-22\/\" target=\"_blank\" rel=\"noreferrer noopener\">halted<\/a>\u00a0the Nord Stream 2 pipeline project to show solidarity with allies. But Germany\u2019s move is mainly symbolic because it continues to import gas from Russia via the existing pipeline that runs through Ukraine. <\/p>\n<p>Germany is also on track to phase out coal as soon as 2030 and will not extend the life of its three remaining nuclear power plants. Without Russia\u2019s energy supply, some\u00a0<a href=\"https:\/\/www.dw.com\/en\/germanys-russian-energy-dilemma\/a-17529685\" target=\"_blank\" rel=\"noreferrer noopener\">estimate<\/a>\u00a0the EU\u2019s reserves would only allow its member nations, including Germany, to survive for three months.\u00a0<\/p>\n<h2 id=\"green-energy-puts-us-in-weak-position\">Green Energy Puts Us in Weak Position<\/h2>\n<p>Ironically, the United States and European Union\u2019s war on fossil fuel in their own backyard has forced them to rely on energy supplies from an adversary. Not sanctioning Russia\u2019s energy sector neutralizes western sanctions and damages the credibility of the United States and our European allies. <\/p>\n<p>How can Putin take us seriously when he gets a slap on the wrist on one hand but receives handsome payment on the other hand because we cannot live without his energy supply? How can leaders in the United States and the European Union sleep at night, knowing that Putin uses every cent we pay for every drop of oil from Russia to finance his <a href=\"https:\/\/www.wsj.com\/articles\/in-a-kyiv-hospital-children-pay-the-price-of-russias-invasion-11646147353\">war crimes against humanity<\/a>?<\/p>\n<p>As a Wall Street Journal editorial\u00a0<a href=\"https:\/\/www.wsj.com\/articles\/energy-and-american-power-vladimir-putin-russia-ukraine-joe-biden-fossil-fuels-energy-11645902803?mod=opinion_lead_pos11\" target=\"_blank\" rel=\"noreferrer noopener\">points out<\/a>, \u201cRussia\u2019s invasion of Ukraine is a 3 a.m. wake-up call to President Biden and America\u2019s liberal political class: Cease your war on U.S. energy. Europe\u2019s climate obsessions have rendered it vulnerable to\u00a0<a href=\"https:\/\/www.wsj.com\/topics\/person\/vladimir-putin\" target=\"_blank\" rel=\"noreferrer noopener\">Putin\u2019s<\/a>\u00a0extortion, and the U.S. is in danger of repeating that tragic mistake.\u201d<\/p>\n<p>Suppose the United States and European uinon are serious about stopping Putin from committing more atrocities and ending the war on Ukraine. In that case, they must start sanctioning Russia\u2019s energy sector immediately and hurt Putin where it hurts the most.<\/p>\n<p>To alleviate economic pain back home, both the United States and the EU must halt their war on fossil fuel and free energy from ruinous policies. Without taking these steps, sanctions will not be effective, Putin has no incentive to change his behaviors, the Ukrainians will continue to suffer, and the United States and the EU look like nothing but hypocrites.\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0<\/p>\n<hr class=\"wp-block-separator\" \/>\n<div class=\"article-author-description fst-italic\">\n  Helen Raleigh, CFA, is an American entrepreneur, writer, and speaker. She&#8217;s a senior contributor at The Federalist. Her writings appear in other national media, including The Wall Street Journal and Fox News.  Helen is the author of several books, including &#8220;<a href=\"https:\/\/www.amazon.com\/Confucius-Never-Said-Helen-Raleigh\/dp\/1499185278\/ref=sr_1_1?dchild=1&#038;keywords=Helen+Raleigh+Confucius+Never+Said&#038;qid=1606079469&#038;sr=8-1\">Confucius Never Said<\/a>&#8221; and \u201c<a href=\"https:\/\/www.amazon.com\/Backlash-How-Chinas-Aggression-Backfired\/dp\/1736008501\/ref=tmm_pap_swatch_0?_encoding=UTF8&#038;qid=1606006113&#038;sr=8-1\">Backlash: How Communist China&#8217;s Aggression Has Backfired<\/a>.&#8221; Follow her on Parler and Twitter: @HRaleighspeaks.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As Russia continues its invasion of Ukraine, the United States and western allies have imposed a new round of economic sanctions. But these won\u2019t achieve the desired effect as long<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1357917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1357917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1357917"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1357917\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1357917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1357917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1357917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}