Psaki Won’t Commit to Banning Russian Gas Purchases, Previews State of the Union Focused on Build Back Better to “Lower Costs”

On 3/1/2022, the day before Biden’s State of the Union address, Psaki would not commit to banning purchases of Russian gas even as Russia bombarded Ukrainian cities. She said the “U.S. government doesn’t dictate where the U.S. market acquires crude” but added “we haven’t ruled that out.” The briefing previewed Biden’s plan to use the State of the Union to push Build Back Better as the answer to inflation, with Psaki promising Biden would “absolutely use the word inflation” — after officials on a background call had been “hesitant” to use it.

Won’t Ban Russian Gas

A reporter asked the fundamental question: “What is the stance of the U.S. in buying Russian gas at this point? Are we ready to pledge not to buy any more Russian gas?”

Psaki gave a convoluted answer. “U.S. government doesn’t dictate where the U.S. market sells our own oil and gas products, nor where it acquires crude or refined products from for domestic consumption. This is all up to the private sector, other than exceptions like countries under sanctions,” she said.

When pressed for clarity — “just in layman’s terms, we are not going to be making any policy that would prohibit the purchase of Russian gas?” — Psaki hedged. “We haven’t ruled that out, but I think what I wanted to convey is what is accurate about what happens now and how it currently works,” she said.

The response frustrated critics who argued the administration was funding Putin’s war machine by continuing to import Russian energy while claiming to stand with Ukraine.

State of the Union: Build Back Better as Inflation Answer

With Biden’s State of the Union the following night, Psaki previewed the speech. Officials on a background call had been “hesitant to use the word inflation or say whether that would be addressed directly,” prompting confusion about the administration’s messaging.

Psaki corrected course. “The President will absolutely use the word inflation tomorrow and he will talk about inflation in his speech,” she said. “How people experience it is what it means for their pocketbooks, for their budgets, for their bank accounts.”

But her proposed solution was the same stalled agenda. “What you will hear the President talk about is how he’s going to reduce costs,” Psaki said. “Lowering costs for prescription drugs — it’s incredibly popular. Who wants to pay more for prescription drugs? I don’t know why that gets to be a Democratic idea, but we’re happy to own that one.”

Congress Won’t Act — Why Will This Time Be Different?

A reporter noted Biden had been “encouraging Congress to pass at least elements of his entire Build Back Better agenda for months” without success. “What gives the President any confidence that this time around things would be more likely to pass given we are just months out from midterm elections?”

“Because there is strong support across the country for lowering costs for prescription drugs, for lowering the cost of childcare, for lowering the cost of elder care and healthcare,” Psaki said. “There’s also strong support for those items among Senate Democrats. So he’s going to keep pressing to get it done.”

Fed Nominees as Inflation Tool

Psaki made an unusual pitch for confirming Fed nominees as an anti-inflation measure. “One of the best, most important steps that the Senate could take is to confirm his slate of eminently qualified nominees to fill out the Federal Reserve Board given they have a very important role as it relates to inflation,” she said.

Climate Report and Manchin

A reporter raised a major UN climate report and noted Senator Manchin had offered a slimmed-down $555 billion climate package from Build Back Better. Psaki confirmed the President supported the effort. “If we had had 50 votes to move that forward, we would have done that,” she said. “There are ongoing discussions happening on the Hill.”

Speech Length

Asked about the scope of the address, Psaki offered a practical preview. “They don’t get longer. They get shorter. Nobody wants a two or three-hour State of the Union,” she said. Biden would “call on Congress to send bills to his desk that deliver progress on ideas that have historically been supported by Democrats and Republicans.”

Key Takeaways

Psaki would not commit to banning Russian gas purchases, saying the “U.S. government doesn’t dictate” private sector energy sourcing, while adding “we haven’t ruled that out.”
Biden’s State of the Union would focus on Build Back Better as the answer to inflation — the same stalled legislation Congress had failed to pass for months.
Officials on a background call were “hesitant” to use the word inflation; Psaki corrected by promising Biden would “absolutely use the word.”
Psaki argued confirming Fed nominees was “one of the most important steps” the Senate could take on inflation.
Manchin’s slimmed-down $555 billion climate proposal remained under discussion but lacked the 50 votes needed to advance.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

Are we ready to pledge not to buy any more Russian gas? We haven’t ruled that out, but U.S. government doesn’t dictate where the market acquires crude.
The President will absolutely use the word inflation tomorrow. How people experience it is what it means for their pocketbooks.
Who wants to pay more for prescription drugs? I don’t know why that gets to be a Democratic idea, but we’re happy to own that one.
What gives the President any confidence this time things would be more likely to pass? Because there is strong support across the country.
They don’t get longer. They get shorter. Nobody wants a two or three-hour State of the Union.
One of the most important steps the Senate could take is to confirm his nominees to the Federal Reserve Board.

Full transcript: 1153 words transcribed via Whisper AI.