The US has resumed buying oil from Russia for the first time in more than a year, despite persistent sanctions imposed on Moscow for its military action in Ukraine according to a Sputnik Globe article.
The US Energy Information Administration (EIA) reports that the US bought 36,800 barrels of Russian oil in October and 9,900 barrels in November, totaling $2.7 million and $749,500, respectively. Specific licenses provided by the US Department of the Treasury‘s Office of Foreign Assets Control (OFAC), which monitors sanctions enforcement, enabled the imports.
The EIA data also indicated that the US paid a premium for Russian oil, with one barrel costing $74 in October and $76 in November, both of which were far higher than the “price cap” of $60 per barrel set by the US and its allies in 2022. The price cap was part of a coordinated attempt by the United States, the Group of Seven (G7), the European Union, Switzerland, and Australia to reduce Russia’s income from oil exports in reaction to its annexation of Crimea and support for separatists in eastern Ukraine.
In March 2022, the United States banned the import of Russian oil, gas, and other energy resources, along with other sanctions targeting Russian individuals, businesses, and industries. The OFAC, on the other hand, has the authority to issue licenses for specific transactions that are otherwise prohibited by the sanctions, on a case-by-case basis.
The reasons for the United States’ decision to resume importing Russian oil are unknown, but some experts suggest that it may be tied to the global energy crisis, geopolitical tensions with China, or diplomatic efforts to end the Ukraine conflict.
What Twitter thinks about the US move
X (previously Twitter) prompted a heated conversation, with some expressing surprise, skepticism, or disapproval of the US move, and others offering their own interpretations or perspectives on the ramifications of the US-Russia oil trade.
One user posted, “This is a betrayal of Ukraine and a capitulation to Putin. The US should stand firm on the sanctions and support the democratic aspirations of the Ukrainian people.”
Another user replied, “This is a pragmatic move by the US to secure its energy needs and diversify its sources. The sanctions are still in place, and the US is still committed to the Minsk agreements. The US is not abandoning Ukraine, but trying to find a peaceful solution to the crisis.”
Another one wrote, “This is a smart move by the US to weaken China’s leverage over Russia. The US is offering Russia a way out of its isolation and dependence on China, and creating an incentive for Russia to cooperate on other issues, such as Iran, North Korea, and climate change.”