The West Stops Importing Russian Oil, Gas And Coal

The United States and Europe have pummeled Russia with unprecedented sanctions over the past several weeks as Vladimir Putin's army bears down on Ukraine. But the West has largely left Russia's largest export untouched: energy. Until now, David Goldman reported for CNN Business.

Photo Insert: The State Office in Washington D.C., United States (placed in the photo)

European Union (EU) officials on Tuesday said the bloc would slash imports of Russian natural gas by two-thirds this year, and the EU announced a plan to achieve energy independence from Moscow "well before 2030."

That would separate Europe from its single biggest energy supplier. Separately, President Joe Biden announced Tuesday a ban on Russian oil, natural gas, and coal imports to the United States. And the UK government said Tuesday it would phase out Russian oil imports by the end of 2022 and explore ways of ending natural gas imports as well.

America's ban is largely symbolic. The United States relies very little on Russian energy: The country's crude represented less than 2% of all US oil imports in December, according to the US Energy Information Administration.

Overall, Russian crude and petroleum products made up about 5% of US imports at the end of 2021. Similarly, just 8% of UK demand is supplied by Russian oil, according to UK Business and Energy Secretary Kwasi Kwarteng.

By contrast, the European Union depends foundationally on Russia for its energy. About 40% of Europe's natural gas and 27% of its oil imports come from Russia. And Russia supplies Europe with 46% of its coal. That's why Europe has been so hesitant to take action against Russia's energy sector.

Restricting energy exports would severely limit Russia's options to keep its economy afloat. Its central bank has been sanctioned, limiting the government's access to cash reserves designed to insulate the country from reliance on the West. Businesses are pulling out or suspending operations in the country and shunning Russian exports.

The Russian economy isn't very diverse. It relies heavily on energy exports, and many of its other key industries, including metals and other raw materials, have been sanctioned or shunned.

Despite the sanctions, the Russian central bank has so far been able to meet many of its debt obligations. Reducing the market for oil and gas could force Russia to rein in spending. For example, government wages and pensions may not be paid on time.

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