White House officials are growing increasingly alarmed about Europe’s energy crisis and Russian President Vladimir Putin’s threats to force a bleak winter on the continent.
U.S. officials believe Putin’s bellicose rhetoric is at least partially a bluff, as Russia needs revenue from energy exports to finance its war effort, even at lower prices. But aides to President Biden have in recent days reviewed their efforts to export liquefied natural gas to Europe, aiming to see if there’s any way for American producers to help.
White House officials — and most economists — believe the growing likelihood of a recession in Europe is unlikely to change under the current trajectory. One senior administration official, who spoke on the condition of anonymity to reflect internal assessments, said the Treasury Department and Council of Economic Advisers estimate that the impact on the U.S. from a European recession would probably be “modest and manageable.” Trade with Europe accounts for less than 1 percent of U.S.
in pushing for allies to unify around a set price for purchasing Russian oil, arguing that it could simultaneously undercut the Kremlin’s finances while safeguarding the world economy from energy shocks.