The United States has explored the possibility of banning Russian oil as a way to punish Russia for its invasion of Ukraine. Before this situation Russia has said that it can close its main gas pipeline to Germany if they continue with the plan.
According to the Russian deputy prime minister, Alexander Novak, rejecting Russian oil will have very serious consequences for the world market, causing a barrel to double its price and cost up to 300 dollars, that is, 1.1 million Colombian pesos.
According to the ‘BBC’, Germany and the Netherlands rejected this ban. For its part, the European Union gets around 40% of its gas from Russia and 30% of its oilso this plan would affect them badly since they can’t get a substitute easily.
Although the UK would not be affected by the gas outage, rising prices in world markets would impact them as demand in Europe increases.
(Read on: Vladimir Putin published the list of ‘hostile’ countries for Russia).
The Russian deputy prime minister, in his speech on national television, said: “It would be impossible to quickly find a substitute for Russian oil on the European market. It will take years and will continue to be much more expensive for European consumers.” He also added that they would be the most hurt in that scenario.
It would be impossible to quickly find a substitute for Russian oil on the European market
Russia is the second largest producer of natural gas in the world and the third largest oil exporter, and any sanction plan involving these two supplies will severely damage the economy, according to the aforementioned medium
In an interview with the ‘BBC’ agency, Nathan Piper, head of oil and gas research at Investec, said that both the oil and gas markets are tight due to the war in Ukraine.
Although Ukraine has implored the West to ban Russian oil and gas, it is feared that prices will soar. However, the barrel has already reached its highest level in almost 14 years since it is at a price of 139 dollars (530 thousand Colombian pesos).
(Must not read: Zelenski denounces broken promises of the West to help Ukraine).
European powers have vowed to move away from Russian hydrocarbons over time, while some Western companies have cut oil shipments and vowed to sell their holdings in Russian energy companies.
Novak, the Russian deputy prime minister, assured that companies in his country have already felt the pressure of the US measures. and those of the European continent.
“We are concerned about the discussion and the declarations around a possible embargo on Russian oil and other petrochemicals, in the plan for its gradual suppression,” he said.
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