Moscow warned, on Monday, that the price of oil might reach $300 a barrel in the event of a ban on Russian exports, at a time when the price hike continues to reach a record high in 14 years.
Oil prices jumped, on Monday, to their highest levels since 2008, due to supply concerns due to the announcement by the United States that it is studying with its European allies a ban on the import of Russian oil and the possibility of delaying the return of Iranian crude to global markets.
Russian Deputy Prime Minister Alexander Novak said, in comments reported by Russian news agencies, that “the ban on Russian oil will lead to catastrophic consequences for the global market,” adding that “the rise in prices will not be expected. More than $300 a barrel, if not more.”
Novak added that it is “impossible” to quickly replace Russian oil in the European market, “it will take more than a year and will be more expensive for European consumers.”
“European politicians should then address their citizens and consumers frankly and warn them of what awaits them and that prices at gas, electricity and heating stations will rise sharply,” he said.
Novak considered that the talks on imposing an embargo on Russian oil create “a state of instability and lead to great harm to consumers.”
And he threatened that “in response to the suspension of the Nord Stream 2 pipeline project, Russia might stop supplies through the Nord Stream 1 pipeline.”
“So far, we have not taken this decision. No one will benefit from it,” Novak said, adding that European politicians’ statements and accusations once morest Russia are pushing Moscow to do so.
Europe relies heavily on Russia for crude oil and natural gas but has become more open to the idea of banning Russian products.
The United States relies much less on crude and oil products than Russia, but a ban would help push prices higher and hurt American consumers who are already struggling with historically high prices at gas stations.
British Prime Minister Boris Johnson called on Monday to gradually move away from dependence on Russian oil and gas as a result of the Russian invasion of Ukraine.
After talks with the prime ministers of Canada and the Netherlands, Johnson said countries must work together to secure alternatives.
But Dutch Prime Minister Mark Rutte warned that imposing a boycott now would have “serious consequences”.
Johnson’s call at a news conference came following the three leaders discussed new sanctions once morest Russia and aid to Ukraine, as the United Kingdom faces criticism over its level of support for refugees fleeing the conflict.
Asked regarding allegations that the US is in active discussions with European countries regarding banning Russian oil imports, Johnson said that Western allies are “moving very, very quickly” and that things that would not have been considered possible weeks ago are “now being discussed”.
And on Sunday, two sources familiar with the matter told Archyde.com that the administration of US President Joe Biden is ready to move forward with imposing a ban on oil imports from Russia to the United States without the participation of its allies in Europe.
But US President Joe Biden said Monday that he had “not made a decision yet” regarding a possible embargo on Russian oil and gas in response to the invasion of Ukraine.
Presidential spokeswoman Jen Psaki said that the issue was discussed, Monday, during consultations that included Biden and the leaders of Germany, France and Britain, adding, “We have different capabilities and capabilities.”