Oil
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs
Russian authorities rejected a price cap on the country's oil set by Ukraine’s Western supporters and threatened Saturday to stop supplying the nations that endorsed it.
Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect Monday, along with an EU embargo on Russian oil shipped by sea.
Kremlin spokesman Dmitry Peskov said Russia needed to analyze the situation before deciding on a specific response but that it would not accept the price ceiling. Russia's permanent representative to international organizations in Vienna, Mikhail Ulyanov, warned that the cap's European backers would come to rue their decision.
“From this year, Europe will live without Russian oil," Ulyanov tweeted. "Moscow has already made it clear that it will not supply oil to those countries that support anti-market price caps. Wait, very soon the EU will accuse Russia of using oil as a weapon.”
The office of Ukrainian President Volodymyr Zelenskyy, meanwhile, called Saturday for a lower price cap, saying the one adopted by the EU and the Group of Seven leading economies didn't go far enough.
“It would be necessary to lower it to $30 in order to destroy the enemy’s economy faster,” Andriy Yermak, the head of Zelenskyy’s office, wrote on Telegram, staking out a position also favored by Poland — a leading critic of Russian President Vladimir Putin's war in Ukraine.
Read more: Can Ukraine pay for war without wrecking economy?
Under Friday's agreements, insurance companies and other firms needed to ship oil would only be able to deal with Russian crude if the oil is priced at or below the cap. Most insurers are located in the EU and the United Kingdom and could be required to observe the ceiling.
Russia’s crude has already been selling for around $60 a barrel, a deep discount from international benchmark Brent, which closed Friday at $85.42 per barrel.
The Russian Embassy in Washington insisted that Russian oil "will continue to be in demand" and criticized the price limit as “reshaping the basic principles of the functioning of free markets.” A post on the embassy's Telegram channel predicted the per-barrel cap would lead to “a widespread increase in uncertainty and higher costs for consumers of raw materials.”
“What happens in China will help shape whether the price cap has any teeth,” said Jim Burkhard, an oil markets analyst with IHS Markit. He said dampened demand from China means most Russian crude exports are already selling below $60.
The price cap aims to put an economic squeeze on Russia and further crimp its ability to finance a war that has killed an untold number of civilians and fighters, driven millions of Ukrainians from their homes and weighed on the world economy for more than nine months.
The General Staff of the Ukrainian Armed Forces reported that since Friday Russia's forces had fired five missiles, carried out 27 airstrikes and launched 44 shelling attacks against Ukraine's military positions and civilian infrastructure.
Kyrylo Tymoshenko, the deputy head of the president's office, said the attacks killed one civilian and wounded four others in eastern Ukraine's Donetsk region. According to the U.K. Defense Ministry, Russian forces “continue to invest a large element of their overall military effort and firepower” around the small Donestsk city of Bakhmut, which they have spent weeks trying to capture.
Read more: Russia rejects pullout from Ukraine as condition for talks
In southern Ukraine's Kherson province, whose capital city of the same name was liberated by Ukrainian forces three weeks ago following a Russian retreat, Gov. Yaroslav Yanushkevich said evacuations of civilians stuck in Russian-held territory across the Dnieper River would resume temporarily.
Russian forces pulled back to the river's eastern bank last month. Yanushkevich said a ban on crossing the waterway would be lifted during daylight hours for three days for Ukrainian citizens who "did not have time to leave the temporarily occupied territory.” His announcement cited a “possible intensification of hostilities in this area.”
Kherson is one of four regions that Putin illegally annexed in September and vowed to defend as Russian territory. From their new positions, Russian troops have regularly shelled Kherson city and nearby infrastructure in recent days, leaving many residents without power. Running water remained unavailable in much of the city — and one resident was seen scooping up water from a dirty puddle.
The city continued to suffer heavy shelling Saturday that left many residents disoriented, toppled power lines and dumped torn-off tree branches on the roads.
“When we start to repair (electricity networks), the shelling starts immediately,” said Oleksandr Kravchenko, who is in charge of high-voltage networks in Kherson. “We just repair electric lines and on the next day we have to repair lines again.”
Ukrainian authorities also reported intense fighting in Luhansk and Russian shelling of northeastern Ukraine's Kharkiv region, which Russia's soldiers mostly withdrew from in September.
The mayor of the city of Kharkiv, which remained under Ukrainian control during Russia's occupation of other parts of the region, said some 500 apartment buildings were damaged beyond repair, and nearly 220 schools and kindergartens were damaged or destroyed. He estimated the cost of the damage at $9 billion.
Russian Defense Minister Sergei Shoigu met Saturday in Minsk with the president and defense minister of Belarus, which hosts Russian troops and artillery. Belarus has said its own forces are not taking part in the war, but Ukrainian officials have frequently expressed concern that they could be be induced to cross the border into northern Ukraine.
Belarusian President Alexander Lukashenko said at the meeting that his troops and Russian forces train in coordination. “We ready ourselves as one grouping, one army. Everyone knows it. We were not hiding it,” he was quoted as saying by the news agency Interfax.
Refiners want Tk 15 per litre soybean oil price hike by tomorrow
Soybean oil price may go up as Bangladesh Tariff Commission (BTC) is considering proposal for hiking edible oil price due to higher production costs.
Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association (BVORBMA), the association of owners of edible oil refining and marketing companies, has submitted a proposal to raise soybean oil price by Tk 15 per litre.
The oil refiners argued that traders will count losses due to higher production costs and price hikes in the global market if soybean oil price is not adjusted.
Also read: Soybean oil: No real effect of reduced tariff
The refiners submitted a letter last Tuesday to Commerce Secretary Tapan Kanti Ghosh, urging the government to readjust the prices by Sunday (tomorrow). The refiners made the proposal a month after lowering soybean oil price by Tk 14 a litre.
Chief Executive of BVORBMA, Nurul Islam Molla, told UNB, the situation was described to the commerce secretary.
After a meeting with Salman F Rahman, the prime minister’s adviser for private industry and investment on October 3, the association lowered the prices by Tk 14 a litre. The price of a litre of unbottled soybean oil was set at Tk 158, a litre bottle at Tk 178, and a 5-litre bottle at Tk 880.
Read More: TCB to procure 2.25 litres of soybean oil, 15,000 mts of lentil for OMS.
“Assurance of getting oil, gas from India big accomplishment of recent visit”
Providing a description of what Bangladesh has been able to achieve from India, Prime Minister Sheikh Hasina has said that her recent visit to the neighbouring country didn’t end with nothing.
The PM said this during a press briefing held on her recent visit to India, at her official residence Ganobhaban on Wednesday afternoon.
Read:“People will vote for Awami League if they want development to continue”
Replying to a question, PM Hasina said what Bangladesh achieved from India depends on one’s perception.
“Bangladesh is going to get fuel from India. The (fuel) oil will be transported from Assam’s Numaligarh to our depot in the north through a pipeline which will also be built by India. Once the supply of fuel starts, the economic activities of north Bangladesh and the wellbeing of the people living there will get a boost,” the PM said.
She added that Bangladesh has also discussed the issue of LNG import with India.
Read:Doraiswami: PM Hasina’s India visit "extremely successful" with "strong deliverables"
“Khulna region faces acute gas crisis from time to time. We’re thinking of importing LNG from India through that region, so that people living in that part of the country can be directly benefited,” added Hasina.
During the briefing, PM Hasina termed the assurance of getting oil and gas from India as big accomplishments of her recent India visit.
After hiking fuel price by 30%, Indonesia considering buying cheap Russian oil
Joko Widodo, President of Indonesia, is contemplating buying Russian oil to ease the burden of rising energy prices.
In an interview with the Financial Times, Widodo said, “We always monitor all of the options. If there is the country (and) they give a better price, of course,”
Widodo raised the price of subsidised fuel by 30% earlier this month, citing financial concerns as the reason for the price increase.
Read: Indonesia hikes fuel prices by 30%, cuts energy subsidies
Thousands of protestors gathered last week in Jakarta and other major cities to condemn the government’s decision to reduce fuel subsidies. The 270 million-strong nation was rocked by demonstrations after the decision.
However, any decision to buy Russian crude oil at a price higher than the G7-agreed price cap could result in US penalties against Indonesia.
Sandiaga Uno, Indonesia’s minister of tourism, claimed in August that Indonesia had received a 30% discount on Russian petroleum. The nation’s state-owned oil corporation, Pertamina, then declared that it was examining the risks of acquiring Russian oil.
Read: Special Presidential Envoy for Climate Kerry to visit Greece, Indonesia, Vietnam
Due to rising food costs, Indonesia, the largest economy in Southeast Asia, reported annual inflation of 4.7% in August.
Soybean oil prices hiked by Tk 7 per litre in Bangladesh
Amid inflation woes, the Bangladesh government has raised the prices of soybean oil by Tk 7 per litre.
Bottled soybean oil will now be available at Tk 192 per litre instead of the earlier Tk 185. Similarly, loose soybean oil will be retailed at Tk 175 per litre while a five-litre bottle of the commodity will cost Tk 945.
This is according to a notification issued by the Bangladesh Vegetable Oil Refiners and Bonaspati Manufacturers Association.
Also read: Importers press for soybean price hike by Tk 20 per litre
According to the notification signed by Nurul Islam Molla, the executive officer of the association, the new prices will be effective from Tuesday.
The decision to increase the soyabean oil prices was taken after discussions with the country's Trade and Tariff Commission and the Ministry of Commerce on August 17.
The association sought a 20 percent price hike at the meeting.
Also read: TCB to procure 125 lakh litres soybean oil, 5000 kg lentil from 7 local suppliers
Similarly, the prices of one litre of loose palm oil has been fixed at Tk 145.
The edible oil marketing companies cut the prices of soybean and palm oil on July 17, adjusting the costs in line with global market rates.
According to Bangladesh Bank data, in the fiscal year 2021-22, about 5.15 lakh tonnes of crude soybean oil were imported into the country -- about 75,000 tonnes more than the previous year.
Read US companies encouraged for oil, gas exploration in Bangladesh's offshore
However, during the same period, the import of soybean seeds was 13.31 lakh tonnes, about 2.37 lakh tonnes more than the previous year. The import of refined soybean oil in the fiscal year 2021-22 was a little over 15,000 tonnes.
No refined soybean oil was imported during the previous financial year. In the fiscal year 2021-22, about one million tonnes of refined and non-refined palm oil were imported.
US companies encouraged for oil, gas exploration in Bangladesh's offshore
Prime Minister’s Power, Energy and Mineral Resources Affairs Adviser Dr Tawfiq-e-Elahi Chowdhury, has encouraged the US companies for oil and gas exploration in Bangladesh's offshore areas and to look at the prospects of nuclear power modular reactors in Bangladesh.
He also urged the US government to invest more through its International Development Finance Corporation (DFC) in Bangladesh's renewable energy sector.
The adviser made the request to US Under Secretary of State for Economic Growth, Energy, and Environment Jose W. Fernandez at a meeting held at the US Department of State in Washington DC on Thursday.
Dr Chowdhury and Under Secretary Fernandez discussed the existing bilateral energy cooperation and explored possible ways to strengthen it further.
The Energy Adviser briefed the Under Secretary on the policies adopted by the government of Prime Minister Sheikh Hasina to make Bangladesh self-reliant in power and energy, said the Embassy in a media release on Friday.
Read: I told India to help maintain stability in Bangladesh, Momen clarifies
He also highlighted how the Bangladesh government was diversifying its power generation using energy from various sources like gas, oil and coal, nuclear as well as renewables.
Mentioning that the current global energy shortages caused by the Ukraine war had placed many countries including Bangladesh at risk in sustaining their energy securities, the Adviser sought the US attention to play its role to improve the situations.
Dr Chowdhury emphasized that the US should come forward with more investment in countries like Bangladesh through DFC financing.
The US Under Secretary appreciated Bangladesh's impressive socio-economic growth and achievements in poverty reduction.
Acknowledging that the Ukraine war was affecting countries of the world, the US did not impose sanctions on essential commodities like food, energy or fertilizers, Fernandez told the Adviser.
How to Reduce Oil Consumption in Cars
The current landscape of automobiles is heavily oil-dependent. Petroleum is still the most readily accessible fuel option for automobiles. But with the global rising cost of fuel, it became imperative to be efficient with oil consumption. Besides this, some factors cause excessive fuel consumption in vehicles. Have you ever checked whether your car is consuming more fuel than usual? Here are several methods to reduce oil consumption in cars.
Signs of Excess Fuel Consumption in Cars
Before diving into efficient oil consumption, it is important to understand the signs of excess oil consumption in cars. One of the more telltale signs of high oil consumption is the constant low bar on the fuel gauge. Other indicators include:
Bad Smell
If you constantly smell burning oil in your car, chances are high that there is an issue with the oil flow. This problem might occur from a faulty gasket or a piston ring. Whatever the case, it causes oil to leak into the combustion chamber of the engine.
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This is not ideal as oil isn’t supposed to directly enter the combustion chamber. In addition to running the risk of accidents, it also causes the inside of the car to smell like burnt oil as you fire up the engine.
Blue Smoke
When you keep the car in neutral for too long, you will see that blue smoke is coming out of the exhaust. This is another clear sign that your car is consuming more oil than it should. The blue smoke is generally attributed to excess oil consumption. While it’s a secondary sign to the oil smell, it’s something that reiterates the problem with the piston rings.
What Causes Excess Oil Consumption in Cars
So now that you know the signs of excess oil consumption, it's time to understand what are the underlying factors behind the problem. More often than not, excess oil consumption can easily be controlled with a few simple measures.
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Non-marked Engine Oil
Every engine from a simple VTEC to a V8 has specified engine oils. The companies tune the engine for specific types of engine oils. So it is important to ensure that the recommended oils are being used for the engine.
The specific oil type and in some cases, the oil brand are mentioned in the engine manual.
Regular Oil Change
This is another important factor that determines the oil consumption of the car. Every car engine requires a regular oil change. It helps to keep the internal components running and doesn’t clog up over time.
Read How to Buy a Used Car in Bangladesh?
It is generally recommended that the oil be changed every 5000 km interval. It can be more or less than that but this should be taken as the median.
Engine Age
An old engine will consume more oil – that’s a grave universal truth. For example, an engine that has run over 100,000 km will consume much more oil than say a 20,000 km running engine. This is mostly because of the wear and tear over the years. The best way to increase engine longevity is to regularly service the car.
Damaged Gaskets and Piston Ring
Gaskets are the caps that act as a sealant against leaks in different engine parts. On the other hand, the piston rings regulate the oil flow. In any case, where the gasket or the piston ring may be damaged, the oil will enter the combustion chamber and show signs as mentioned previously. So, it's important to get the gaskets and the piston rings serviced regularly.
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Vacuum Issues
The vacuum mechanism of a car controls the airflow within the car and its chambers. A faulty vacuum mechanism might allow the oil to leak into the vacuum chamber. This will set a chain reaction where the vacuum will eventually get clogged and restrict the airflow in the entire car.
Driving Style
Believe it or not, driving style may also influence how a car might perform on the oil front. People who love to drive fast with a higher rev count may very well see more oil usage than standard cars.
In addition to these, other oil-related filters and sealing caps may play a role in high oil consumption as well as potential engine damage.
Read The most popular car models in Bangladesh
How to Reduce/Fix Oil Consumption in Cars
So you know the signs and potential causes for oil leaks/ high oil consumption in your car. The question is, how do you fix it? Well, here’s how.
Using Recommended Engine Oil
Always stick to what's written in the manual. The best way to ensure that the engine is up and running is by using the correct engine oil. It will help to keep the engine in perfect condition and reduce the potential risk of high oil consumption.
Changing Engine Oil at Regular Intervals
This point cannot be stressed enough. It’s important to not only use the correct engine oil but also to change it at a regular interval. It ensures that carbon doesn’t build up over time in the engine and cause a potential oil leak.
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Driving Responsibly
Another useful way to conserve oil is to drive in Eco mode. Most modern cars regardless of brands have an Eco mode which greatly contributes to keeping the mileage high and oil consumption low.
Repair the Faulty Engine Parts
The last resort to high oil consumption is to fix the problematic engine parts. This step is generally reserved for old cars. Repairing engine parts won't make the car run like new but it will at least ensure that there isn’t any oil leakage from the car.
Final Words
High oil consumption in cars can be a huge problem. It not only reduces the mileage and overall performance of the car but also drives up the maintenance cost. It's uncommon to see oil consumption problems. The best way to combat the problem is by taking precautions. Once you use your car responsibly and take care of it, the chances of an oil leakage or exessive oil consumption in cars will become significantly low.
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Soybean Oil Substitutes: Some Healthier Options for Cooking, Baking
Soybean oil is one of the most widely used oils in the world. It has a high smoking point, which makes it suitable for high-temperature frying. When we talk about soybean oil, we are talking about a type of vegetable oil that has a strong taste and smell. The type of soybean oil used in cooking will have a significant effect on the taste of the food. However, there are healthier alternatives to soybean oil that you can use for cooking and baking.
Best Substitutes of Soyabean Oil
Soybean oil is most commonly used in cooking because it comes from vegetables. While it contains very little saturated fat, it is harmful to health. So, if you are looking for healthier alternatives, read on to get your options.
Mustard Oil
An easily available alternative to soybean oil is mustard oil. It contains only 7% saturated fat. This oil contains vitamins 'E' and 'K' and beneficial ingredients like plant sterol. The unsaturated fats in it increase the level of good cholesterol in the body and reduce the level of bad cholesterol. So. Mustard oil helps to keep the heart-healthy. Furthermore, it contains omega-3 fatty acids, which are quite beneficial for good health. It also reduces body temperature by stimulating sweat glands. Its anti-bacterial and anti-fungal properties in it protect against rashes and infections.
Read: Cooking Without Oil: How and Why?
Coconut Oil
In Asian countries, coconut oil is used only for hair care. But this oil is also used for cooking in many countries. Coconut oil works great in digesting food and increasing body strength fast. It also helps in weight control. It is also used for baking items like cakes and cookies. However, coconut oil is high in saturated fat, so it should be eaten with control.
Canola Oil
Canola oil is low in saturated fats. It is considered one of the healthiest vegetable oils and is beneficial for overall health. It has a high proportion of omega-3 fatty acids, which reduces the risk of a wide range of diseases. Canola oil also reduces the risk of heart disease and helps maintain healthy blood pressure levels.
Canola oil also contains a high concentration of vitamin E, which is beneficial for the skin and hair. Moreover, it is a great source of vitamin K, a fat-soluble vitamin that has been linked to a reduced risk of certain cancers, such as prostate and colon cancer.
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Sunflower Oil
Sunflower oil is highly beneficial for the body. It speeds up metabolism. Its low cholesterol levels are useful for those who are on a diet. Sunflower oil reduces the risk of high blood pressure. However, sunflower oil is good for cooking purposes only.
Sunflower oil reduces the risk of heart disease, asthma, and cancer. Sunflower oil contains a lot of nutrients, which helps us to overcome our weaknesses. This oil is high in magnesium, which reduces stress. These oils are now widely used in cooking to reduce body weight.
Olive Oil
The use of olive oil in cooking has a long history. This oil has been used in the Mediterranean region for hundreds of years. This oil is made from covered olives. Olive oil can be used as a healthy alternative to soybean. Olive oil is high in ultra-saturated fatty acids, which helps to keep our hearts in good condition. Olive oil is high in omega-3, and omega-6 fatty acids, so it is very effective for health. It also has special benefits in reducing cholesterol.
Read: Yummy Bengali Seafood Recipes to Try at Home
The antioxidant in olive oil also cures incurable diseases. It also fights against various inflammations. The anti-inflammatory properties of olive oil fight chronic diseases such as cancer, heart disease, digestive problems, type 2 diabetes, Alzheimer's, arthritis, and obesity. Scientists believe that three and a half teaspoons of extra virgin olive oil act as an anti-inflammatory drug in adults.
Peanut Oil
Peanut oil is considered to be healthy too. Peanut oil is low in saturated fat. It is naturally fat-free. It reduces the accumulation of fat in the blood vessels. This oil can be used instead of soybean. It is rich in protein, sodium, iron, calcium, potassium, magnesium, fiber, vitamin-A, vitamin B, vitamin C, and many other micronutrients. It contains monounsaturated fats and polyunsaturated fats. It also contains fatty acids, which lower bad cholesterol. The oil also has good cholesterol in it.
Sesame Oil
Although sesame oil is not used conventionally, it can be a great alternative to soybean oil. It is delicious and healthy. However, it is better to avoid this oil in the case of baking because it can easily spoil other flavors.
Read: Savory Lassi: 7 Easy Recipes to Try at Home
Butter
Butter can be used in place of vegetable oil or other oils in many recipes. It is a good option for those who are limiting their intake of saturated fat in their diet. Vegetable oils are often made with genetically modified seeds, which many people prefer to avoid. Butter can be used to make delicious cookies, brownies, cakes, or other treats. It can also be used in savory dishes, such as mashed potatoes, dips, or other dishes. Butter also has a richer flavor than most oils, making it a great choice for sautéing or Making Sauces.
Non-Oil Substitutes for Soybean Oil
There are many non-oil alternatives to soybean oil that can be used to reduce your risk of heart disease and improve your diet. For example, you can use yogurt as an oil substitute for baked items. Even yogurt is also used in curries. You can also have several options, and you can go for low-fat organic varieties. Sometimes you can use milk too.
Final Words
Soybean oil is a versatile cooking oil, but there are healthier substitutes that can be used in place of it. Some of these alternatives include olive oil, mustard oil, canola oil, and more. Each has its own benefits, so it is important to choose the best option for your health and cooking needs.
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Looking to deepen pain for Putin, West studying oil and gas
The United States unleashed some of its toughest actions against Russian President Vladimir Putin right after he rolled his troops into Ukraine. Polls in the U.S. find that people want Washington to do more. So what’s left, financially, diplomatically and militarily, to step up the pressure?
The U.S. could get strong results from any number of next steps, economists and current and former U.S. officials say. It could simply persist in pouring cash and potent weaponry into Ukraine — a likely course. It could even commit to shutting down some of the inroads the Kremlin has made into U.S. political and financial systems, also conceivable.
But the mightiest trigger the West can pull now on Russia, many experts agree, is the one on a gas pump nozzle. Cutting off Russian profits from oil and natural gas sales has become a main topic among world leaders looking at what else they can do to force Putin to end his invasion.
“It would be very useful to try to devise a way to reduce proceeds from those sales and that really is the proper objective, I think, of a ban,” Treasury Secretary Janet Yellen told a meeting of world finance leaders Thursday.
“But if we can think of a way to do that without harming the entire world from higher energy prices, that would be ideal," Yellen said.
President Joe Biden already has ended the relatively minor U.S. imports of Russian oil and other fossil fuel products. But the U.S. would be central if allies move to cut the global flow of Russian fuel and punish nations and businesses that fail to comply.
Global purchases of Russian oil and gas production account for at least 40% of government revenue for Moscow. Exports are keeping Russia’s economy afloat despite the sanctions enacted so far and financing the war.
Cutting back further on Russian petroleum to the market would make a global supply crunch even worse, increasing prices for everyone, including in the United States.
Republicans already are making gas price increases that stem in part from Russia’s war a top campaign point against Biden.
“Everybody wants a pain-free option, right?” asked Daniel Fried, a former assistant U.S. secretary of state for Europe, and one of many urging the U.S. to take tougher action as Russia builds forces for a new phase of attacks in Ukraine. “Yeah, they seldom exist.”
“If anybody writes they can do this thing without some effect on gas prices, you know, without taking a hit — you’re crazy, because you can’t,” Fried said.
The U.S. is already being asked to assure the world that U.S. producers can help make up for lost Russian supply, if Europe moves to cut the hose on Russian oil purchases quickly. The U.S. would likely be an administrator and enforcer in any secondary sanctions to penalize China or other nations or businesses if they buy from or enable Russia’s oil and gas industry.
European Commission President Ursula von der Leyen said European nations have considered diverting their payments for Russian oil and gas into escrow accounts, similar to deals forced on Iran and Iraq as part of sanctions.
A poll by The Associated Press and the NORC Center for Public Affairs Research found that more than half of respondents want Biden to be tougher on Putin.
People in the U.S. may just be coming around to accepting that doing that could mean financial hardships for them. By 51% to 45%, respondents in the AP-NORC poll said the U.S. should focus on sanctioning Russia as effectively as possible more than on limiting damage to the U.S. economy.
But ask Alan Gold of Potomac, Maryland, if he's willing to pay more for gasoline as part of any global move to starve Russia of money for the Ukraine war, and the answer you get is a growl.
“I'm paying $5 a gallon now,” Gold said this past week at a strip mall gas station, jerking his head at the price tally rolling upward as he pumped gas into his vehicle.
Elina Ribakova, deputy chief economist of the Institute of International Finance, said Russia's war is boosting the price it gets for its oil and gas, driving the surplus in Russia's current accounts to nearly $60 billion, a recent high despite all the West's sanctions.
Economists and policymakers have to decide next steps as part of the larger context of militaries at war, the risks of nuclear war and the cost of Ukrainian lives, Ribakova told an online panel with Princeton’s Bendheim Center for Finance this past week. “This is the cost we’re thinking about when we think about sanctions ... not just about economics.”
Barring major shifts, the financial realm is the one where the next major U.S. actions against Russia will come from.
Militarily, the U.S. is unlikely to send in many new, complex weapons systems, like U.S. tanks or fighter or bomber jets. Doing so would tie up Ukrainian fighters in training on unfamiliar weapons when they're needed for fighting, by the Pentagon's reasoning.
Instead, the U.S. is expected to keep doing what it's doing militarily, only more so, pumping in more cash and basic battlefield weapons and resupplies. On Thursday Biden pledged an additional $1.3 billion for heavy artillery, 144,000 rounds of ammunition and other aid.
Further boosting U.S. intelligence-sharing to help Ukraine in the fight is an option.
On the diplomatic front, the U.S. and likeminded nations are exploring ways Russia could be further isolated. Russia has already been suspended from the U.N. Human Rights Council and is facing a push at the world body’s educational, scientific and cultural organization to strip it of its UNESCO presidency and bar it from hosting a June meeting of its World Heritage Committee.
Russia is unlikely to be suspended from the International Civil Aviation Organization, World Health Organization or Food and Agriculture Organization, however. Any attempt to remove it from the world body’s most powerful grouping – the U.N. Security Council – would fail on a Russian and likely Chinese veto.
READ: Putin claims Mariupol win but won’t storm Ukrainian holdout
Talk of the U.S. officially designating Russia or Russian mercenaries as terrorists or supporters of terrorism hasn't gained traction.
There is another big step the U.S. and its democratic allies should take, that doesn't get as much attention, argues Alex Finley, a former officer of the CIA’s directorate of operations: Clean up their own act.
“We need to examine our own role,” said Finley, who tracks seizures of Russian yachts and other Western penalties on Putin. She and others say lax regulation and enforcement in the West have allowed Putin and Russia to influence U.S. elections, park cash from corrupt enterprises in shell companies and offshore tax havens, and buy visas and passports to Western countries.
It's all served to erode transparency and the rule of law in Western democracies, as Putin intended, said Finley.
The West got lax because "we made money with it,” Finley said. “But we did it in a way that we sold ... part of the soul of democracy.”
Europe agrees to ban Russian coal, but struggles on oil, gas
The European Union nations have agreed to ban Russian coal in the first sanctions on the vital energy industry over the war in Ukraine, but it has underlined the 27 countries' inability to agree so far on a much more sweeping embargo on oil and natural gas that would hit Russia harder but risk recession at home.
The coal ban should cost Russia 4 billion euros ($4.4 billion) a year, the EU’s executive commission said. Energy analysts and coal importers say Europe could replace Russian supply in a few months from other countries, including the U.S.
The move is significant because it breaks the taboo on severing Europe's energy ties with Russia. It's also certain to fuel already record-high inflation. But compared with natural gas and oil, coal is by far the easiest to cut off quickly and inflicts far less damage on Russian President Vladimir Putin's war chest and the European economy. The EU pays Russia $20 million a day for coal — but $850 million a day for oil and gas.
Shocking pictures of bodies in the Ukrainian town of Bucha are keeping discussion of broader sanctions alive, with EU officials saying they're working on targeting Russian oil.A
Also read: Ukrainian leaders predict more gruesome discoveries ahead
While the EU ponders additional sanctions, Italian Premier Mario Draghi said no embargo of Russian natural gas is up for consideration now.
“And I don’t know if it ever will be on the table,’’ he told reporters Wednesday.
EU countries, especially big economies like Italy and Germany, rely heavily on Russian natural gas to heat and cool homes, generate electricity and keep industry churning.
Still, Draghi said, “the more horrendous this war gets, the allied countries will ask, in the absence of our direct participation in the war, what else can this coalition of allies do to weaken Russia, to make it stop.”
In case a gas embargo is proposed, Italy “will be very happy to follow it” if that would make peace possible, Draghi said. “If the price of gas can be exchanged for peace ... what do we choose? Peace? Or to have the air conditioning running in the summer?"
For now, even the coal ban brings worrying consequences for politicians and consumers. Germany and EU members in Eastern Europe still generate a large share of their power from coal despite a yearslong transition toward cleaner energy sources.
“The coal ban means European consumers will have to brace for high power prices throughout this year,” according to a Rystad Energy statement.
lso read: Ukraine appeals for weapons as fight looms on eastern front
Higher prices in countries that use more coal will spread across the EU through its well-connected power grid, the energy research company said. That will bring more pain. Europe has been facing high energy prices for months over a supply crunch, and jitters over the war have sent them even higher.
Governments already have been rolling out cash support and tax relief for consumers hit by higher utility bills. High energy prices have pushed inflation in the 19 member countries that use the euro currency to a record 7.5%.
Commodities analyst Barbara Lambrecht at German bank Commerzbank said EU governments likely could agree on a coal embargo because it would take effect after three months and only apply to new contracts. The downside is the limited impact on Russia, with coal only 3.5% of its exports and only a quarter going to the EU.
Germany’s coal importer’s association said Russian coal could be completely replaced from the U.S., South Africa, Colombia, Mozambique and Indonesia “by next winter” — at higher prices.
European coal futures prices jumped after the EU announced the coal proposal, from around $255 per ton to $290 per ton. It was approved by the EU ambassadors and the sanctions should become official once published in the EU's official journal on Friday.
The big debate remains oil and natural gas, with the European Union dependent on Russia for 40% of its gas and 25% of its oil. It's tougher for Europe to cut off than the U.S., which imported little Russian oil and no gas and has banned both.
Yet European Council President Charles Michel said, “I believe that measures on oil and even on gas will also be needed sooner or later.”
It's difficult for the EU to agree on energy sanctions because countries like Germany, Italy and Bulgaria are much more dependent on Russian gas in particular than others. Europe has scrambled to get additional gas through pipelines from Norway and Algeria and with more liquefied gas that comes by ship, but those global supplies are limited.
For now, the EU's plan is to cut dependence on Russian gas by two-thirds by year's end and completely over the next several years by stepping up alternative supplies, conservation and wind and solar.
Germany has reduced its reliance on Russian natural gas from 55% to 40%, but the government says the consequences to jobs from a cutoff would be too great.
Germany's steelmaking association, for instance, has warned of forced shutdowns that would throw people out of their jobs or onto government support and send shortages of basic parts rippling through the rest of the economy.
Energy Minister Robert Habeck says the country will halt Russian coal this summer, oil by year's end and gas in mid-2024.
Oil would be easier to ban than natural gas, because like coal, there's a large and liquid global market for oil and it comes mostly by ship, not fixed pipeline like gas.
But it's not problem-free either. Russia is the world's largest oil exporter, with 12% of global supply. Taking its oil to Europe off the market would drive up prices from other exporters, such as Saudi Arabia, when supplies are already tight.
Russia might simply sell the oil to India and China, which aren't taking part in sanctions — although the price Moscow gets might be lower.
The economic hit from a full energy cutoff range from a drop of 1.2% to 2.2% of gross domestic product in the 19 countries using the euro, plus 2 percentage points of additional inflation, recent economist estimates say.