Biden: Defending Ukraine Liberty Could Cause US Economy Pain

President Joe Biden on Tuesday acknowledged the likelihood that U.S. and allied sanctions on Russia in retaliation for an invasion of Ukraine would have significant blowback on the American economy, including possible price hikes and disruption to the nation’s energy supply.

“The American people understand that defending democracy and liberty is never without cost,” Biden said in remarks at the White House about the ongoing crisis. “I will not pretend this will be painless.”

He said the administration was working proactively to try to preempt supply issues by working with energy producers and shippers on contingency plans, and said he would work with Congress on unspecified “additional measures to protect consumers and address the impact of prices at the pump.”

Biden also said Tuesday that the U.S. has “not yet verified" Russia’s claim that some of its forces have withdrawn from the Ukraine border. He said an invasion of Ukraine remains a distinct possibility.

Biden spoke hours after Russia announced that some units participating in military exercises near Ukraine's borders would begin returning to their bases. Russian President Vladimir Putin earlier Tuesday said Russia was ready for talks with the United States and NATO on military transparency, missile deployment limits and other security issues.

But Biden continued to express skepticism about Russia’s intentions. Biden warned again that if Russia invades Ukraine the U.S. “will rally the world to oppose its aggression."

Earlier Signs

Putin said Tuesday he welcomed a security dialogue with the West as his military reported pulling back some of its troops near Ukraine — signals that fueled hopes the Kremlin has opted for a diplomatic path for now despite Western fears of an imminent Russian invasion of its neighbor.

Putin said he doesn’t want war and would rely on negotiations as he presses his demand for the West to halt Ukraine’s bid to join NATO. At the same time, he didn’t commit to a full pullback of troops, saying Russia’s next moves in the standoff will depend on how the situation evolves.

While the overtures soothed global markets that have been on edge amid the worst East-West tensions in decades, Washington and its European allies remained cautious, saying they want to see evidence of a Russian pullback.

The U.S. and NATO have warned that over 130,000 Russian forces massed near Ukraine could invade at any time.