Russia warned on Monday of ‘catastrophic consequences’ for the global market of the implementation of a Western embargo on Russian oil, discussed by Washington and the European Union as a response measure to the Russian military intervention in Ukraine.
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“It is quite obvious that the refusal to buy Russian oil will lead to catastrophic consequences for the world market”, declared the Russian Deputy Prime Minister, in charge of Energy, Alexandre Novak.
“The surge in prices is likely to be unpredictable and to reach more than 300 dollars for a barrel, or even more,” he said, quoted by Russian news agencies.
According to Mr. Novak, it is impossible to quickly replace Russian oil deliveries to the European market with those from an alternative source. “It will take several years and it will be much more expensive for European consumers who will be the main victims of such a scenario,” he warned.
The price of a barrel of Brent from the North Sea came close to 140 dollars on Sunday around 11 p.m. GMT, close to its absolute record of 147.50 dollars reached in July 2008.
The statement by Alexander Novak comes as sanctions on Russian hydrocarbons in retaliation for the Russian military intervention in Ukraine are currently being discussed by the United States and the European Union, the West having already taken a series of heavy economic sanctions. once morest Moscow in recent days.
Russia is “concerned” by talks of a possible embargo on its oil, which “undermine market fundamentals, create uncertainty and result in significant harm to consumers,” according to Mr. Novak.
After Moscow recognized the independence of the separatist territories in eastern Ukraine in February, the West also froze the Nord Stream II gas pipeline linking Russia to Germany.
“We have every right to take a similar decision and put our embargo on gas deliveries via the Nord Stream I gas pipeline” which carries Russian gas to Europe and which is currently “100% full”, Mr. Novak said.
“But we have not taken such a decision for the moment (…). Although European politicians are pushing us to do this with their statements and accusations,” he stressed.