Russia threatens Europe with the energy crisis and will pay with

Reading time: 2 minutes

Europe will pay an additional $ 400 billion for higher energy prices and. moreover, it could face a shortage of oil products, Russian Deputy Prime Minister Alexander Novak warned yesterday in the margins of the St. Petersburg Economic Forum, quoted by Reuters.

In his speech, the Deputy Prime Minister of Moscow promised that talks on increasing gas sales to China would accelerate, while warning Europe that it would pay a high price for the oil embargo imposed on Russia.

Russia is heavily dependent on its billions of dollars in energy exports for its financial stability, given that more than half of the EU’s imported gas comes from Russia, leaving the EU bloc exposed to any supply disruptions.

EU leaders have agreed to a 90% reduction in Russian oil imports by the end of the year, as well as other sanctions, including the removal of Russia’s largest bank, Sberbank, from the SWIFT system, with the idea of ​​punishing Moscow for its intervention in Ukraine. A spokesman for the European Commission said that EU sanctions on imports of crude oil from Russia at sea would be imposed with a transition period of six months for crude oil and eight months for refined products.

Novak predicted that the plan to reduce oil imports from Russia could lead to a shortage of oil products on the European market. He also blamed “poor energy security planning” in the United States and Europe, which would be the basis for record fuel prices and rising inflation.

Russia claims that it can redirect its energy exports from Europe to countries such as India and China, to cover the losses caused by the loss of sales on the European market.

However, Novak says Russia’s energy infrastructure will need to be developed to ensure that supply routes and pipelines reach new markets, as most of the existing infrastructure is directed to supply neighbors from the west.