Energy sanctions will create more volatility rather than promoting peace and security: China Daily editorial

The Joe Biden administration announced a ban on "all imports of Russian oil, and gas, and energy" on Tuesday.

According to the United States president, the latest escalation was targeted at "the main artery of Russia's economy", and "will deal another powerful blow" to it.

Given Russia's heavy dependence on energy exports, the ban, particularly if the US allies and partners follow suit, would weigh heavily on the Russian economy.

But despite his "overriding focus" on making the US and its allies "totally united" in responding to the Russian "special military operation" in Ukraine, he has a less than united alliance on this measure.

Around 60 percent of Russian oil is exported to Europe. If that channel is cut off, the outcome will certainly be devastating for Russia's economy. But Europe's long dependence on Russian energy supplies is its soft underbelly.

Hungarian Prime Minister Viktor Orban has ruled out such a ban by his country, saying: "We still need the gas and oil that comes from Russia."

Germany, which relies on Russia for more than half of its gas supplies and more than a third of its oil, is just as reluctant, with Chancellor Olaf Scholz cautioning Russian energy is "of essential importance" to the daily life of its citizens.

"Supplying Europe with energy for heat generation, mobility, electricity supply and industry cannot be secured in any other way at the moment," he said.

The European Commission presented a new plan on Tuesday aimed at reducing the bloc's dependency on Russian energy supplies.

"We could gradually remove at least 155 billion cubic meters of fossil gas use, which is equivalent to the volume imported from Russia in 2021. Nearly two-thirds of that reduction can be achieved within a year, ending the EU's over-dependence on a single supplier," the commission said.

Yet since there is no agreement among the 27 EU member states regarding energy sanctions against Russia, national governments will probably make decisions on their own initiative. Although the EU leaders are expected to debate how to become more independent from Russian energy, as well as further sanctions on Russia, when they gather for a summit in France on Thursday, they are unlikely to reach a wholehearted agreement.

Which is why acknowledging that most US allies and partners in Europe are not in a position to adopt the same ban as the US, President Biden has decided his country will go it alone.

With the result that Washington is reaching out to oil-producing countries to help stabilize oil prices. In an ironic twist of fortune, this includes Iran and Venezuela, which it has estranged and sanctioned. But as OPEC chief Mohammed Barkindo pointed out, "There is no capacity in the world that could replace 7 million barrels per day".

The "catastrophic consequences (of the ban) for the global market" that Russian Deputy Prime Minister Alexander Novak warned of may be more or less exaggerated. But the disruption to the global market is a clear and present danger that will have long-tail consequences.