Mar 8, 2022: Russia warns Western oil imports ban could result in oil prices doubling and prompt the closure of the main gas pipeline from Russia to Germany.

A top Russian official has warned that Western sanctions on Russian oil imports could double oil prices to about $300 a barrel and signal the closure of the main gas pipeline from Russia to Germany. In a statement on state television on Monday, Russian Deputy Prime Minister Alexander Novak said “it is clear that the rejection of Russian oil will have devastating consequences for the world market.”

“The surge in prices would be unpredictable,” he said. “It would be $300 per barrel if not more.”

Russia supplies 40% of Europe’s gas. It is also the world’s largest exporter of crude and oil products as a whole, accounting for about 7 million barrels per day or about 7% of global supply.

Russia’s Deputy Prime Minister Novak Alexander has said that if Europe imposes a ban on Russian oil and gas, it will take more than a year for the continent’s countries to replace the volume of oil they receive from Russia and pay significantly higher prices.

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

“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.”

He said Russia was fulfilling its obligations in full but that it would be entirely within its rights to retaliate against the European Union after Germany froze the certification of the Nord Stream 2.

“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 said.

“So far we are not taking such a decision,” he said. “But European politicians with their statements and accusations against Russia push us towards that.”

The warning came as the U.S, seeking to increase pressure on Moscow over its attack on Ukraine – said Washington and its European allies were considering banning oil imports from Russia. The White House says U.S President Joe Biden, who is facing demands from U.S lawmakers to cut back on oil and natural gas exports to Russia, has met with his counterparts in France, UK and Germany.

But Biden has not made a decision “at this point”, a spokesperson said.

After the invasion of Ukraine, Western countries hit Moscow with a wall of sanctions, Washington imposed sanctions on Russian refineries and Nord Stream 2 on the export of technology that was due to piped gas from Russia to Germany. Berlin, which relies heavily on Russian crude, also froze the pipeline’s certification.

But German Chancellor Olaf Scholz on Monday warned against a ban on Russian oil and gas, saying Russian energy imports were “necessary” for Europeans’ daily lives.

The uproar has already sent oil prices to their highest level since 2008. Early Monday morning, the benchmark US crude rose to $130 a barrel overnight, then moderated to nearly $119 in afternoon trade, an increase of 3%.

The international price reached $139 before falling to about $123 a barrel. Just a month ago, before the Russian invasion of Ukraine, the U.S Department of Energy predicted an average oil price of about $80 a barrel this year.

Stay tuned to BaaghiTV for latest news and Updates!