Despite strained relations, the US has recently stated that it will not impose sanctions on the Russian energy sector. The US officials said that energy sanctions could be the last resort as they might have negative consequences for the global economy.
Russia’s economy is highly dependent on the export of natural resources. A great chunk of money flowing into the budget comes from the energy industry and agricultural goods. As a result, it is quite vulnerable to sanctions. If its energy sector is hurt, it may deliver a severe blow to the Russian economy. Yet, Russia is one the largest countries in the world. Should its economy collapse, it will affect other countries as well. That is why the US considers energy sanctions against Russia as an extreme measure given the impact on the global economy and domestic gasoline prices.
"We're trying to do it in such a way where it is a menu of options. We will not do everything on that menu all at once. The energy section of it is the more extreme option if it becomes necessary. I do not see that as being in the first tranche. You always want to keep things in your back pocket," one of the officials said.
Some analysts believe that there is a clear correlation between President Joe Biden's approval ratings and oil prices. Apparently, avoiding tough measures that target Russia's energy sector, which could affect global oil markets and prices at the pump, may not be strong enough to deter Moscow.
