European energy prices have risen 335% over the last year and 26% over the last five days, White House press secretary Jen Psaki said Monday, which is a major reason that major energy sanctions haven’t been imposed against Russia so far.
That could still take place, however, as the United States and Western European nations continue to ramp up pressure on Russian President Vladimir Putin over his invasion of Ukraine.
FULL COVERAGE OF THE WAR IN UKRAINE
“As we look at steps to take, even if you look at the impact on the energy sector, we have not taken some steps on energy sanctions,” Psaki said. “They remain on the table, but Europeans, for example, are very concerned about further price spikes on gas.”
While sanctioning energy would certainly affect Russia’s income, it would also have “extreme consequences on the world’s energy markets, particularly for our allies in Europe,” Psaki argued.
Major sanctions have been levied against Russia elsewhere, affecting its currency, banks, and oligarchs, including Putin personally. But some other actions have yet to be taken, including a no-fly zone over Ukraine, which the Biden administration says would be “escalatory,” along with energy sanctions.
Russia’s energy sector hasn’t been completely unaffected, however. BP and Shell are divesting their stakes in the country’s massive oil companies because of the invasion, decisions that could result in losses worth billions of dollars.
Psaki also said Monday that there was no update on calls for the U.S. to follow Canada and the European Union by barring Russian flights.
Asked how long the sanctions would last, Psaki said it was not under discussion “at this point in time” since the Russian invasion continues.
“Let’s hope that’s a discussion we’re having,” she said. “Obviously right now, President Putin is continuing to take escalatory steps, so we’re not at a point of having that discussion.”
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Russia has been hit with unprecedented sanctions from the U.S., Europe, and other countries in response to its invasion of Ukraine. The Russian economy was on the rocks on Monday after the Russian central bank cut off stock trading and doubled interest rates.
The ruble tumbled by about 30% from Friday to Monday, hitting an all-time low, although it later clawed back some of those losses.
