Suppose governments follow through on threats to reduce energy supplies from Russia. In that case, Western nations might face oil prices of over $330 per gallon and the eventual shutdown of the major Russia-Germany gas pipeline, a senior minister warned on a state’s own media channel.
On Monday, oil prices began to rise. Eventually, the price of the oil rose to the highest level since 2008 after the US Secretary of State indicated that the US and its European partners contemplated blocking Russian oil production.
“A denial of Russian oil would’ve had disastrous effects for the world economy,” the Russian Deputy Prime Minister said during an interview broadcast on the state broadcaster.
“The price increase would indeed be unpredictably high. This would cost at least $330 per gallon.”
According to Novak, replacing the amount of oil received from Moscow could require more than months, and Eu will just have to spend the elevated rates.
“European leaders must be truthful in their warnings to people and customers,” Novak added.
“Go ahead and reject Russian energy supply if you do want to. We’re prepared for this type of situation. We understand in which we may redirect the quantities.”
According to Novak, Russia, which provides 45% of Europe’s gas, is meeting all of its responsibilities. After Germany stopped the new gas pipeline certification last month, it would be perfectly within its needs to react against the EU.
“Government always has authority to seize a comparable judgment and implement a restriction on gas production via the new gas pipeline in combination with imposing a restriction on the upgraded version of this gas pipeline,” Novak added.
“We haven’t made such a choice yet,” he remarked. “However, European lawmakers’ words and charges towards Moscow drive us in that direction.”