Russia warns of “catastrophic” repercussions if the West bans oil imports | war news between russia and ukraine

A Kremlin official threatens to cut off gas supplies in Europe and warns that oil prices could exceed $300 a barrel in the event of a Russian oil embargo.

A senior Russian official has warned that a Western ban on Russian oil imports could more than double oil prices to around $300 a barrel, and prompt the shutdown of a major gas pipeline from Russia to Germany.

Russian Deputy Prime Minister Alexander Novak said in a statement broadcast on state television on Monday that “it is absolutely clear that the rejection of Russian oil will lead to serious consequences for the global market.”

He said that the price hike would not be expected. “It would be $300 a barrel if not more.”

The warning came as the United States – which is seeking to increase pressure on Moscow over its invasion of Ukraine – said Washington and its European allies were considering a ban on Russian oil imports.

US President Joe Biden, facing mounting calls from US lawmakers to cut Russia off from the money it gets from oil and natural gas exports, discussed the issue during a conference call with his counterparts in France, Germany and the United States, the White House said. Kingdom on Monday.

A Biden spokesman said no decision had been made “at this point.”

Western countries imposed a wall of sanctions on Moscow in the wake of its attack on Ukraine, with Washington imposing sanctions on technology exports to Russian refineries and Nord Stream 2 which was due to gas pipelines from Russia to Germany.

Berlin, which relies heavily on Russian crude, has also frozen certification of this pipeline.

But German Chancellor Olaf Scholz warned earlier on Monday against a ban on Russian oil and gas, saying that Russian energy imports are “essential” to Europeans’ daily lives.

We are ready for that

Russia supplies 40% of European gas.

It is also the world’s largest exporter of crude oil and petroleum products combined, with about 7 million barrels per day or about 7 percent of global supplies.

Novak, Russia’s deputy prime minister, said that if Europe were to ban Russian oil and gas, the countries of the continent would need more than a year to replace the volume of oil they receive from Russia and would have to pay much higher prices.

“European politicians need to honestly warn their citizens and consumers about what to expect,” Novak said.

If you want to refuse energy supplies from Russia, go ahead. We’re ready so we know where we can redirect folders.”

Novak said Russia was fulfilling its obligations in full but would be fully entitled to retaliate against the European Union after Germany froze certification of Nord Stream 2.

“With regard to … a ban on Nord Stream 2, we have every right to make a corresponding decision and to impose a ban on the pumping of gas through the Nord Stream 1 gas pipeline,” Novak said.

“So far, we have not taken such a decision,” he said. But European politicians, with their statements and accusations against Russia, are pushing us towards this.

The turmoil has already pushed oil prices to their highest levels since 2008.

Early on Monday morning, benchmark US crude jumped to $130 a barrel overnight, and then fell back to around $119, up 3 percent, in afternoon trading. The global price jumped to $139 before falling back to around $123 a barrel.

Just a month ago, before the Russian invasion of Ukraine, the US Department of Energy projected that the oil price would average around $80 a barrel this year.