DUBLIN: Western nations may face oil costs of over $300 per barrel and the attainable closure of the primary Russia-Germany gas pipeline if governments observe by on threats to lower power provides from Russia, a senior minister mentioned on Monday.
Oil costs spiked to their highest ranges since 2008 on Monday after US Secretary of State Antony Blinken mentioned Washington and European allies had been contemplating banning 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 mentioned in an announcement on state tv.
“The surge in prices would be unpredictable. It would be $300 per barrel if not more.”
Novak mentioned it could take Europe greater than a yr to substitute the quantity of oil it receives from Russia and it could have to pay considerably larger costs.
“European politicians need to honestly warn their citizens and consumers what to expect,” Novak mentioned.
“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.”
Novak mentioned Russia, which provides 40% of Europe’s gas, was fulfilling its obligations in full however that it could be completely inside its rights to retaliate towards the European Union after Germany final month froze the certification of the Nord Stream 2 gas pipeline.
“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 mentioned.
“So far we are not taking such a decision,” he mentioned. “But European politicians with their statements and accusations against Russia push us towards that.” (Writing by Conor Humphries; Editing by Chris Reese and Cynthia Osterman)
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