- Deputy PM Alexander Novak warns a Russian oil import ban would have catastrophic consequences for the global market.
- Novak predicts oil prices could surge to more than $300 per barrel if Western countries impose an embargo.
- He says replacing Russian oil in Europe is impossible quickly and will take more than one year.
- European consumers will face much higher costs; prices at gas stations, electricity, and heating will skyrocket.
- Russia may halt Nord Stream 1 supplies in retaliation, though no decision has been made, Novak warned.
Russian Deputy Prime Minister Alexander Novak warned Monday that a ban on Russian oil imports would have “catastrophic” consequences, as Western allies consider further sanctions on Moscow over Ukraine.
“A ban on Russian oil will lead to catastrophic consequences for the global market. The surge in prices will be unpredictable — more than $300 per barrel, if not more,” Novak said in remarks carried by Russian news agencies.
Novak added that it would be “impossible” to quickly replace Russian oil on the European market.
“It will take more than one year and it will be much more expensive for European consumers,” he said.
“European politicians should then honestly warn their citizens, consumers what awaits them and that prices at gas stations, for electricity, for heating will skyrocket,” he said.
Novak said talks of an embargo on Russian oil creates “instability and leads to significant harm for consumers”.
He added that in retaliation for the halt on the Nord Stream 2 pipeline project, Russia could stop supplies via the Nord Stream 1 pipeline.
“So far we have not made this decision. Nobody will benefit from this,” Novak said.
“Although European politicians are pushing us to this with their statements and accusations against Russia,” he added.
