The American ban on Russian oil and gas imports now appears more symbolic. It was probably to show the allies and the rest of the world that the US isn’t doing enough to stop the war or punish Russia.
After the announcement, there was market volatility, and oil prices ratcheted up to $139 before settling down to $125 per barrel. However, the US ban on Russian oil and gas imports will have a limited impact on global prices because Russian oil only amounts to 8 percent of US energy imports.
A significant supply shortage could occur if and only if the European countries ban Russian energy products. However, that isn’t likely to happen in the short term. Germany, in particular, has clearly stated that it is too reliant on Russian energy. Banning it would bring Germany to a grinding halt. So it wouldn’t adopt the stance the US and UK are taking.
There isn’t an equivalent alternative to replace gas and oil imports from Russia in the European market. They could work to cut energy reliance on Russia, but it would take years for them to reach there. So clearly, the European nations’ energy dependency on Russia is on display now.
Russia has also warned the West that any move to block its oil and gas exports will see Russia retaliating by closing the Nord Stream 1 supplies to Germany.
Meanwhile, the US and UK have been talking to Poland to get fighter jets for Ukraine–a move that can lead to a military conflict between Nato and Russia. Though Poland expressed its willingness to send its fighter jets, it made it clear that Nato would deliver them to Ukraine. Their concern is apparent. Sending the jets from Poland’s territory into Ukraine can irk Russia and bring them in the line of fire.