Biden warns energy prices could be impacted if Russia invades Ukraine [Video]

• President Biden informed Americans that energy prices in the U.S. could soar if Russia decides to invade Ukraine.
• Russia could face sanctions when they move forward with the invasion, leading to massive gas price hikes.
• The White House will be weighing all options to help combat potential price hikes.

Americans could feel the economic effects if Russia were to invade Ukraine, President Biden said on Tuesday. These could include notably higher energy prices.

Biden had urged Russia to choose the diplomatic route, and warned Russian President Vladimir Putin against an invasion, saying that it would just be a “self-inflicted wound.”

The president added that the administration will do their best to deter the Kremlin from launching an attack.

But if an invasion were to happen and Americans are involved, the U.S. will have to respond.

“To be clear, if Russia decides to invade, that would also have consequences here at home,” Biden stated. “But, the American people understand that defending democracy and liberty is never without cost.”

The president added that this cause is a bi-partisan one, and thanked members of Congress, both Democrats and Republicans, for speaking out against Russia’s potential invasion.

“I will not pretend this will be painless,” Biden noted. “There could be impact on our energy prices. So, we are taking active steps to elevate the pressure on our own energy markets to offset raising prices.”

Biden said that the administration will be coordinating with Congress and major energy producers and consumers to address the potential price hikes.

White House press secretary Jen Psaki later clarified, “The president wasn’t making a market assessment or how the market moves.” She noted that the president simply “wanted to be very clear and direct with the American people about what the impact could be.”

Psaki added that the administration is already considering all options “to alleviate the pressure on our own energy markets,” which may or may not include suspension of the federal gas tax.

According to the U.S. Energy Information Administration, Russia was the third-biggest supplier of foreign petroleum for the U.S in 2020. They were also responsible for 7 percent of imported oil. In 2019, Russia exported $13 billion in mineral fuels to the U.S., which was more than half of all exported goods to the U.S.

On Tuesday, the Russian Defense Ministry claimed that they have started to draw back tens of thousands of troops near Ukraine’s borders. However, U.S. intelligence has not verified that claim.

Source: The Hill