Senator Ben Cardin (D-MD) sits down with Yahoo Finance Live to talk about past geopolitical aggressions from Russian President Vladimir Putin, carefully applying sanctions on Russia, the energy sector, additional COVID-19 relief funds, inflation, and the federal gas tax.

Video Transcript

AKIKO FUJITA: Well, we are continuing to follow the latest developments from the Russia-Ukraine border. Several reports of increased shelling there with pro-Russian rebels ordering the evacuation of civilians. Amid those heightened tensions, President Biden is expected to speak this afternoon at 4:00 PM Eastern after he holds a call with NATO allies. And of course, we’re going to bring that to you live right here on Yahoo Finance.

Let’s bring in Senator Ben Cardin of Maryland, who’s also on the Senate Foreign Relations Committee. Senator, it’s good to talk to you today. I think a lot of people trying to make sense of the headlines that we’ve gotten this week. Is diplomacy going to take its course? Is Russia– is a Russian invasion of Ukraine inevitable? Talk to me about what you’re hearing and what your biggest concerns are.

BEN CARDIN: Well, first, it’s good to be with you. Look, the circumstances are extremely dangerous right now. When you take a look at what Mr. Putin has done, the provocative actions he just recently took in Eastern Ukraine, the number of troops that he has on the border fully prepared to do a full incursion into Ukraine, and his past history, what he did in Georgia, what he’s done– this is part of his playbook, to use misinformation and to use everything he possibly can to bring down a country. And he wants to bring down an independent Ukraine.

So it’s a very, very dangerous situation. What will come next, only Mr. Putin knows. We certainly will not give up on diplomacy if Mr. Putin wants a diplomatic answer. But to now, every indication is that he is determined to use force to bring down the Ukrainian government.

AKIKO FUJITA: You and your colleagues in the Senate have called for sanctions or increased sanctions against Russia. And I realize Republican senators have put forward their own sanctions as well. To what extent can these sanctions really have teeth in curtailing Vladimir Putin from scaling back some of those ambitions you just highlighted?

BEN CARDIN: Well, to be clear, Democrats, Republicans, House and Senate, are fully behind President Biden and our European allies to make it clear that Mr. Putin will pay a very, very, very heavy price if he does further incursions into Ukraine. There’s no dispute about that. We are fully behind the president in that regard. There’s many of us who think that Mr. Putin already deserves to have additional sanctions imposed, but that would also, we think, give the president some additional leverage in his conversations with Mr. Putin.

But that’s more of a strategy issue, rather than our resolve that do everything we can to prevent the incursion. If it happens, the president will have our full support to impose the most serious sanctions, both on sectorial economy, as well as individuals.

AKIKO FUJITA: We had your colleague, Senator Jon Tester, on earlier this week, who said, look, I’m all for sanctions, but we also need to be mindful of the economic impact this could have on our allies over in Europe, specifically on energy. How do you view that? Especially if we’re talking about something like Nord Stream 2, I mean, number one, what power does the US have in halting that? And how do you think about the consequences for a country like Germany if that is halted, especially given their reliance on natural gas coming in from Russia?

BEN CARDIN: Well, Senator Tester is mentioning some important points. But our number one priority is the security of Europe. And if Mr. Putin can overtake a sovereign country by the use of force without consequences, that does not bode well for the future security of Europe or other parts of the world by the use of force to try to change borders. That will have a much more devastating impact on future economies as well as the safety of Europe. So that has to be our primary concern.

These sanctions on the energy sector, particularly, we need to long-term have a more secure Europe on energy sources. We know that. But in the short-term, we have to make sure that energy is not used as a weapon, as Mr. Putin is trying to do. That only will lead to bad results. So for all these reasons, we have to stay resolved and resolute in our force to say that we will impose the heaviest possible sanctions if there are further incursions into Russia.

AKIKO FUJITA: Let’s talk about more domestic issues. You have been, for some time here, calling for additional funds here to combat COVID-19. I know there was a request in from the Health and Human Services Department that called for $30 billion in additional funds.

Given how much was spent on this most recent wave for Omicron, where do those discussions stand right now? And how are you thinking about that, number one, in terms of additional budgets that are needed on the health care side to fight the virus, and then the amount of money that could potentially go to small businesses that are still hurting in a big way?

BEN CARDIN: Well, we have some unfunded programs now that need to be completely funded. And that is the Restaurant Revitalization Fund. We made certain commitments. The money, it was not adequate. We need to replenish those funds. That should be done as soon as possible. I hope we can get it done in early March.

In regards to additional COVID needs, there’s clearly a need in our health resources to make sure that we can stay ahead of the next variant. And there’s likely to be another variant. So we have to have the funds necessary to do all of the preparation, including vaccination preparations, the therapeutic drugs, protective equipment, testing. All that will require additional resources. And as they’re needed, we have to make those resources available.

And then we hope we’re at near the end of the tunnel in regards to this COVID point, the impact it has on our economy. But if it continues, then we have to be prepared again to step forward, as we did in the past, to make sure that our economy can continue even during a pandemic.

AKIKO FUJITA: You talk about the challenges in the economy. Certainly a lot of Americans feeling the pinch from price pressures and inflation now hitting a 40-year high. That has certainly hurt this administration, at least, in the eye of the public.

And I wonder where you stand especially on a potential holiday on the federal gas tax. That’s something that has been raised by other Democratic lawmakers. The cynical take would be to what extent that can really bring down prices and how much of this is motivated politically. Where do you stand on that? And should there be a bit of a reprieve, given how far up gas taxes have run?

BEN CARDIN: Well, I understand that we have to deal with the short-term pressures that American families are sustaining, so I recognize that. But the deal with the causes for inflation, we really do need to deal with the labor force to have more people able to work. And that means in the Build Back Better agenda, affordable child care is critically important.

We’ve got to protect our supply chains as one of the principal reasons why we seeing a shortage of goods, and therefore an increase in price. And that means pass the legislation that is passed by both the House and Senate that needs to be reconciled that would make America more products produced here in our own country.

They are the two things I think we can do the most to protect against the impact of higher costs. But we recognize that American families are hurting, and that’s why we want to deal with more affordable housing, more affordable educational costs. We want to deal with the cost centers that are affecting American families.

AKIKO FUJITA: Specifically on the federal gas tax, though, would you support a suspension?

BEN CARDIN: Well, it depends. We have to make sure that there’s adequate resources to carry out our infrastructure and our transportation programs. It’s not just as simple as a holiday. It’s a question of how we’re going to adequately fund the needs that are critically important. You know, the transit needs, the road needs, broadband, all these are important services that the American people need, and we have to make sure we can continue to carry out those programs.

AKIKO FUJITA: Well, Senator Ben Cardin, we always enjoy having you on the show. I hope to have you back on again soon. Maryland Senator Ben Cardin there joining us today from Baltimore. Coming up, existing home sales–