It is impossible to quickly replace the volume of Russian oil on the European market, it will take more than one year, the ban on Russian oil will lead to a rise in prices for fuel, electricity and heating in Europe and the United States, he added.
"It is absolutely obvious that abandoning Russian oil will lead to catastrophic consequences for the world market. A surge in prices will be unpredictable - more than $300 per barrel, if not more," he said.
"At the same time, it is impossible to replace the volume of Russian oil on the European market quickly, it will take more than one year, and it will be much more expensive for European consumers. Under this scenario, they will become the main victims. European politicians should then honestly warn their citizens, consumers, what awaits them and that prices for gas stations, for electricity, for heating will skyrocket. This will affect other markets, including the American one," he added.
Novak noted that Russia is the largest supplier of oil to Europe, which consumes about 500 million tonnes of oil, of which Russia supplies about 150 million tonnes, or 30%. Russia also supplies the EU with another 80 million tonnes of oil products.
"Moreover, everyone knows that the supply of oil and oil products from Russia today is the most competitive for the European market, given the developed oil pipeline infrastructure and the logistics of sea deliveries," the Deputy Prime Minister stressed.
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Russia could cut off the flow of gas through Nord Stream 1 in response to the ban on Nord Stream 2, but chooses not to, Russian Deputy Prime Minister Alexander Novak said on Monday.
ReplyDeleteRussia provides 40% of gas consumption in Europe and has always been a reliable partner, Novak said, adding that Gazprom fulfills the contract for transit through Ukraine by 100%.
"We understand that in connection with unfounded accusations against Russia regarding the energy crisis in Europe and the imposition of a ban on Nord Stream 2, we have every right to take a 'mirror' decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline, which today is loaded at the maximum level of 100%. But so far, we are not making this decision. No one will benefit from this. Although European politicians are pushing us to this with their statements and accusations against Russia," he said.
DeleteRemoving Russian oil from the market would make energy prices skyrocket to over $300 per barrel of oil, Russia’s deputy prime minister, Aleksandr Novak, said on Monday, adding that Russia is not dependent on the West and can “reroute” its supplies elsewhere.
ReplyDeleteThe European officials are “once again seeking to put all the blame for their own recent energy policy shortfalls on Russia,” Novak told journalists, adding that “Russia has nothing to do with the current price hike on market volatility.”
Russia has been a “reliable partner” for Europe for many decades, Novak said, adding that Moscow has been supplying the European nations with roughly 40% of their gas needs. The deputy prime minister made his comments after gas prices in Europe hit record highs of almost $3,900 per 1,000 cubic meters while the price of Brent crude oil surpassed $130 per barrel for the first time in a decade.
The deputy prime minister also slammed Germany’s decision to freeze certification of the Nord Stream 2 gas pipeline project and argued that Moscow has a “full right” to stop supplying gas via Nord Stream 1 pipeline, which has not been targeted by Western sanctions. Russia is not that dependent on the West and “knows where to reroute” its supplies if needed. Still, Moscow will not take reciprocal measures against Europe in this case, he added.
DeleteWhite House spokesperson Jen Psaki told reporters on Monday the Biden administration had not yet reached a decision whether it would ban oil imports from Russia. US President Joe Biden is reportedly already planning to press Saudi Arabia to increase production and is even sending out peace feelers to Venezuela.
ReplyDeleteUS Stocks Fall by 800 Points as Anti-Russia Sanctions Push Petrol Above $130 per Barrel
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