A Russian senior minister said on Monday that Western countries could face oil prices of over $300 per barrel. The main Russia-Germany gas pipeline may also be closed if governments push through with their threats to cut energy supplies from Russia.
On Monday, oil prices hiked to their highest since 2008. This comes after US Secretary of State Antony Blinken said that the US and European allies were considering a ban on Russian oil imports.
“It is absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market,” Russian Deputy Prime Minister Alexander Novak said in a statement on state television.
“The surge in prices would be unpredictable. It would be $300 per barrel if not more.”
Novak added that it would take Europe more than a year to replace the volume of oil it receives from Russia, and it would have to pay significantly higher prices.
“European politicians need to honestly warn their citizens and consumers what to expect,” Novak said.
“If you want to reject energy supplies from Russia, go ahead. We are ready for it. We know where we could redirect the volumes to.”
Russia supplies 40% of Europe’s gas. Novak said that after Germany froze the Nord Stream 2 gas pipeline certification last month, Russia would be entirely within its rights to retaliate against the European Union despite fulfilling its obligations.
“In connection with … the imposition of a ban on Nord Stream 2, we have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline,” Novak said.
“So far we are not taking such a decision,” he said. “But European politicians with their statements and accusations against Russia push us towards that.”
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