Biden Energy Policy Response to Ukraine War Hurts U.S. Interests

In mid April, Secretary of Defense Lloyd Austin joined Secretary of State Antony Blinken in urging Ukraine to desist from attacking Russian oil refineries. Such attacks have disabled up to 15 percent of refinery capacity in Vladimir Putin’s Russia, denting both its ability to earn export income and to wage war against Ukraine. In an election year, the Biden administration’s policy clearly values domestic fuel-price stability over helping Ukraine in its war for survival. The stated purpose of the U.S.-led price cap and ban on Russian exports to the West is to maintain Russia’s supplies while reducing the income from its exports without causing a price spike by taking Russian oil off the world market.

Biden’s policy has harmed U.S. interests while aiding major industrial competitors in China and India. These huge economies are exploiting cheap Russian oil imports to build new refining capacity. Additionally, shifting oil refining to these countries has had negative environmental effects and weakened U.S. industrial competitiveness.

About the Author

Thomas J. Duesterberg

Thomas J. Duesterberg is a senior fellow at the Hudson Institute.

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In mid April, Secretary of Defense Lloyd Austin joined Secretary of State Antony Blinken in urging Ukraine to desist from attacking Russian oil refineries. Such attacks have disabled up to 15 percent of refinery capacity in Vladimir Putin’s Russia, denting both its ability to earn export income and to wage war against Ukraine. In an election year, the Biden administration’s policy clearly values domestic fuel-price stability over helping Ukraine in its war for survival. The stated purpose of the U.S.-led price cap and ban on Russian exports to the West is to maintain Russia’s supplies while reducing the income from its exports without causing a price spike by taking Russian oil off the world market.

Biden’s policy has harmed U.S. interests while aiding major industrial competitors in China and India. These huge economies are exploiting cheap Russian oil imports to build new refining capacity. Additionally, shifting oil refining to these countries has had negative environmental effects and weakened U.S. industrial competitiveness.