Sunday, the Group of Seven announce Commitment of member states to end “their dependence on Russian energy, including by phasing out or banning the import of Russian oil.”
In a new interview with Yahoo Finance Live on Monday, Deputy Treasury Secretary Wali Adeemo said the United States will do its part to help countries achieve this goal. “One of the things we are committed to doing is to help provide energy for Europe,” he said, to make the transition as quickly as possible.
The G7 move is perhaps the most dramatic move yet to isolate Vladimir Putin and his economy from the West. But it will require countries that rely heavily on Russian energy – notably Germany – to retool their economies and take a step they have been unable to do so far.
The G7 promised to deliver it “in a timely and orderly manner” but exactly how remains unclear.
Adeemo said the Biden administration “is now calling for… [U.S. oil] Companies to produce more energy, because we want to keep costs low” before moving to clean energy in the coming decades.
Also on Sunday, the White House Unveiled new sanctions against Russia Including actions against Gazprom executives and other companies to punish Moscow for its war against Ukraine.
“This is exactly what we expect Europe to do.”
Ademo, who is second in the Treasury after Treasury Secretary Janet Yellen, said the energy aid may look similar to previous efforts on coal and liquid natural gas.
The United States has already banned the import of Russian oil, gas, and coal, but weaning Germany off Russian energy will be more difficult. Of all the G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States—Germany is most closely connected to Russia, with Putin’s country supplying more than a third of European gas and 34% of German crude oil in 2021.
Adeyemo recently traveled to Berlin Discusses theAmong other topics, he said, “ways to increase costs for Russia while mitigating spillover effects.”
The last example of LNG offers another cautionary note about the limits of the amount of energy America can provide. In March, the European Union and the United States Unveiled a deal To increase LNG exports to Europe by at least 15 billion cubic meters in 2022. The shipments will help Europe buy less from Russia, but the total is far from enough to offset 155 billion cubic meters of natural gas were imported in 2021 from the state.
However, Adeemo promised that Russia will feel the blow in oil exports in the coming months.
“Throughout the Russian invasion of Ukraine, the United States, Europe and our allies around the world have taken steps to reduce resources to Russia in order to ensure they have fewer resources to fight their war on Ukraine,” he said. “This is exactly what we expect Europe to do as part of our alliance.”
Ben Wershkull is a writer and producer at Yahoo Finance in Washington, DC.