FT News Briefing War in Ukraine sparks Germany’s defence policy transformation
Mar 3, 2022
The podcast dives into the potential for sanctions targeting Russian oil and gas exports as tensions escalate. It discusses Federal Reserve chair Jay Powell's support for an interest rate rise amid uncertainty. A major focus is Germany's transformative defense policy shift, driven by the Ukraine conflict, as they earmark €100bn to modernize their military. This change impacts both military and corporate landscapes significantly. Lastly, experts weigh the effects of a possible US oil embargo on fuel prices, revealing limited direct consumer impact.
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Sanctions on Russian Energy Exports
- Sanctions on Russian energy are being considered as buyers avoid Russian supplies and OPEC refuses to increase production.
- US President Joe Biden says nothing is off the table, including sanctions on Russian energy.
US Momentum for Russian Energy Ban
- There's growing momentum in the US to ban Russian energy imports, seen as a key area for sanctions.
- A bipartisan bill is circulating to give President Biden explicit power for an oil/gas embargo on Russia.
Impact of US Ban on Russian Oil
- A US ban on Russian oil would have minimal direct impact, as it only accounts for 3% of imports.
- A de facto embargo already exists due to Western refiners' reluctance to buy Russian oil.