Russia said it may cut its main gas pipeline if the oil ban goes ahead.
Russia may close its gas supplies to Germany if the West goes ahead with a ban on Russian oil. The US has been exploring a potential ban with allies as a way of punishing Russia for its invasion of Ukraine. But Germany and The Netherlands had rejected the plan.
‘Rejection of Russian oil would lead to catastrophic consequences for the global market’, says Deputy Prime Minister Alexander Novak. According to Novak, the oil ban may lead to increasing prices to more than double. It may cost up to Three hundred dollars a barrel.
Russia is the world’s second-largest gas producer and third-largest oil exporter, and any move to impose sanctions on its energy industry would badly damage its economy. The EU gets about 40 percent of its gas and 30 percent of its oil from Russia. It has no easy substitutes if supplies are disrupted.