- Russia has warned the US and the world that the price of crude oil will skyrocket if the West bans its oil and gas
- The Russian Deputy Prime Minister, Alexander Novak issued the warning on Monday saying that if the US and its allies makes good their threats, the consequences will dire
- According to Novak, crude all oil price will hit an all-time high of $300 per barrel if petroleum products from Russia is banned
Russia is puffing warning to Washington and its European allies that if they should go ahead and implement a ban on its oil and gas, the ripple effects will reverberate across the global oil markets,
The country has threatened to shut down a major gas pipeline to Germany and said that oil prices will hit $300 per barrel if the West makes good their threats, according to a report by CNBC
Russia’s Deputy Prime Minister, Alexander Novak said on Monday, February 7, 2022, that it is obvious that a rejection of Russian oil will lead to disastrous outcomes for the global market.
The swell in oil prices would be unimaginable. It would hit $300 per barrel if not more, Russia said.
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Russia issues serious warnings
The Deputy Prime Minister mentioned Germany’s decision to stop the certification of the highly controversial Nord Stream 2 gas pipeline, saying it has every right to take an equal decision to inflict a ban on gas pumping through the Nord Stream 1 gas pipeline.
But the Deputy Prime Minister said no such decision has been taken yet and warned that if the European countries and their politicians with their utterances and indictments against Russia may push it towards taking that decision.
Novak’s statement comes as Russia’s invasion of Ukraine enters the second week with a massive humanitarian crisis already recorded as Moscow continues its onslaught.
What is the UN is saying about the Russian invasion of Ukraine
The United Nations said about 1.7 million refugees have already left Ukraine since Russia’s began what many call an aggressive invasion of the country started on February 24, 2022. The UN describes the humanitarian crisis as the fastest-growing in Europe since World II.
The US and its allies have been consulting on whether to inflict further ban on Russia’s oil and gas exports as a way of disciplining Moscow for the Ukraine invasion.
Energy experts have threatened that a ban on Russia’s oil and gas would have a ripple effect on the global energy market.
The country is the third-largest producer of oil in the world after the US and Saudi Arabia and it is the globe's highest exporter of crude to markets around the world. It is also the highest exporter of natural gas.
The EU gets about 40 per cent of its gas through Russian pipelines, most of which run through Ukraine.
US, UK, others pile ‘devastating’ economic pressure on Russia over the invasion of Ukraine
Legit.ng has reported that the United States President, Joe Biden on Thursday, February 24, 2022, inflicted what he says is a devastating set of sanctions against Russia for the invasion of Ukraine.
Biden said the new sanctions will squeeze the Russian economy and, while it may not deter Putin, who has some allied countries, will force his people to call him to order and make him leave Ukraine.
According to Biden during a television address to Americans, said Putin chose the war as he has been building blood banks and hospitals across the border with Ukraine in preparation for the attack that has now claimed lives on both sides.