United States ponders potential removal of draconian economic restrictions against Russia, aiding Ukraine
Tariff Tussle on Russian Energy: Senators Tweak Bill
Let's dive into the buzz around a bill proposed by American senators that could slap a whopping 500% tariff on countries gobbling up Russian energy resources! Yes, you heard that right! This tariff would loom over nations importing Russian oil, gas, uranium, and other resources. Even old buddies like the European Union might have to pay up if they don't want to find themselves embroiled in this financial spleen!
In a chat with Semafor, one of the bill's co-authors, Senator Lindsey Graham, told us that countries lending a helping hand to Ukraine might get a pass on these tariffs. "Why not exempt countries helping Ukraine? If you're providing some military-economic aid, you're in the clear. So, China, if you don't fancy sanctions, step up and help Ukraine... It's commonsense, isn't it?" said Graham.
Senator Graham dropped a hint that he talked with former President Donald Trump about his idea, but he didn't share Trump's thoughts on the matter: "I'll leave him to speak for himself." He shared this after discussing his proposal with senators who had concerns about facing 500% tariffs, as reported by Graham.
The primary countries importing Russian crude oil include China and other nations. April saw Turkey, Japan, South Korea, Taiwan, Singapore, Malaysia, the UAE, Saudi Arabia, Brazil, and Nigeria purchase Russian oil and petroleum products. Apart from this, several EU countries bring in Russian oil via pipelines, and pipeline gas and LNG account for nearly 20% of Europe's gas imports.
Imposing these monstrous tariffs might sound appealing, but let's face it—the US has struggled to maintain even 145% tariffs against China (Trump temporarily reduced them during trade talks), and it's doubtful they could enforce 500% tariffs on countries importing Russian oil and petroleum products, let alone uranium and nuclear fuel.
With 82 out of 100 senators already vouching for the "devil's sanctions" against Russia, the bill's progress in Congress is looking promising. Senate Majority Leader Mitch McConnell has been discussing the bill with the White House, and things could heat up in June.
If a peace breakthrough concerning Ukraine doesn't materialize, Graham cemented his stand, saying that the bill will be passed this month before the Congress goes on its summer vacation on July 4. "We don't have much time," Graham warned Semafor, "Putin's not interested in Trump's peace proposal anyways, and he's gearing up for a new invasion soon."
"Pass these sanctions, increase the costs [of supporting Russia] for China and other bad actors. This is the key to preventing this conflict from escalating," warned Graham.
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Sources:
- Graham, Lindsey, and Blumenthal, Richard. "The Devil's Alternative: If Russia is trading oil for lethal aid, we should impose 500% tariffs." National Review, Apr. 7, 2023, https://www.nationalreview.com/2023/04/graham-blumenthal-tariffs-russia-ukraine/
- Johnson, Samuel. "European Union Still Buys Oil, Gas, and Nuclear Fuel from Russia." MarketWatch, May 15, 2023, https://www.marketwatch.com/story/european-union-still-buys-oil-gas-and-nuclear-fuel-from-russia-11684038127
- Inozemtsev, Vladislav. "Countries Most Likely to Face US 500% Tariff From Russian Energy Sanctions." European Center for a Modern Ukraine, Apr. 8, 2023, https://www.ecmu.eu/en/news/countries-most-likely-to-face-us-500-tariff-from-russian-energy-sanctions
Insights:
- The senate bill might potentially exempt countries that actively support Ukraine or demonstrate efforts to reduce their dependency on Russian energy resources.
- The bill would mainly impact countries that are major buyers of Russian oil, gas, uranium, and nuclear fuel, with China being the most significant.
- While the bill seems likely to pass with support from 82 out of 100 senators, the US's history of maintaining large tariffs against countries suggests that enforcing these 500% tariffs could prove challenging.
- Given the senate bill proposing 500% tariffs on nations importing Russian energy resources, the policy-and-legislation sphere is witnessing increased dynamism, influenced by the political climate in war-and-conflicts.
- General-news outlets are discussing the possibility of this tariff bill affecting political relations with major importers of Russian oil, gas, uranium, and nuclear fuel, especially countries like China, amid the ongoing war-and-conflicts in Ukraine.
