Trade Committees' Leadership Agrees on Russia Oil Import Ban, End of Normal Trading Status
The leaders of the Senate Finance and House Ways and Means committees agreed on legislation to suspend normal trade relations with Russia and Belarus and to ban the import of oil from Russia, they said on March 7.
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House Ways and Means Ranking member Kevin Brady, R-Texas emailed a statement that he said was also signed onto by Chairman Richard Neal, D-Mass., Senate Finance Committee Chairman Ron Wyden, D-Ore. and ranking member Mike Crapo, R-Idaho, that said: “As Russia continues its unprovoked attack on the Ukrainian people, we have agreed on a legislative path forward to ban the import of energy products from Russia and to suspend normal trade relations with both Russia and Belarus. Taking these actions will send a clear message to Putin that his war is unacceptable and the United States stands firmly with our NATO allies."
The legislation also gives the administration the authority to increase tariffs beyond Column 2 rates and it gives the president the authority to restore normal trade relations with Russia and Belarus “subject to certain conditions," but Congress can disapprove of the restoration and stop it. The committees didn't say what the conditions are for a return to most favored nation status and didn't respond to questions.
House Speaker Nancy Pelosi sent a Dear Colleague letter to the caucus on March 6 describing the legislation, saying, "Our bill would ban the import of Russian oil and energy products into the United States, repeal normal trade relations with Russia and Belarus, and take the first step to deny Russia access to the World Trade Organization. We would also empower the Executive branch to raise tariffs on Russian imports."
She didn't say when that bill might go for a vote, but said that Congress would approve $10 billion in aid to Ukraine this week.
The administration has been hesitant to block the import of Russian oil because it would likely lead to higher gas prices. Pelosi touched on that issue in her letter: "Let me be clear: the United States need not choose between our democratic values and our economic interests. The Administration and the Congress remain laser-focused on bringing down the higher energy costs for American families and our partners stemming from Putin’s invasion."
Secretary of State Antony Blinken, speaking on CNN's "State of the Union" on March 6, also expressed openness to an oil import ban. "We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil, while making sure that there is still an appropriate supply of oil on world markets. That’s a very active discussion as we speak,” he said.
However, German Chancellor Olaf Schulz said March 7 that it is not possible to cut off Russian oil and natural gas in response to the invasion of Ukraine, because it's needed for heating homes, for cars and trucks, for power plants and for industry, and it cannot be secured in any other way at the moment. "It is therefore of essential importance for the provision of public services and the daily lives of our citizens," he said, according to an informal translation.