Prices Could Touch $300/Barrel if West Bans Oil Imports, Warns Russia

Russia has threatened to cut natural gas supplies to Europe via the Nord Stream 1 pipeline in response to the strict sanctions imposed by Western governments.

(Photo: Nord Stream website)

Russian Deputy Prime Minister Alexander Novak warned on Monday, 7 March, that if the United States banned the import of Russian oil, it could lead to "catastrophic consequences" for global markets, prompting doubling of prices to $300 a barrel, and possibly more, reported Al Jazeera.

Novak said on state television that it was "absolutely clear that a rejection of Russian oil would lead to catastrophic consequences for the global market."

He added,

"The surge in prices would be unpredictable. It would be $300 per barrel if not more."

The announcement comes after Washington said that the US and its European allies were considering a ban on the import of Russian oil to mount pressure on Putin to stop the war in Ukraine and to cut off Russia from the money it gets from oil and natural gas exports.

However, a White House spokesperson added that President Joe Biden has not made a decision "at this point."

Nord Stream 1 Pipeline to Germany

Russia has also threatened to cut natural gas supplies to Europe via the Nord Stream 1 pipeline in response to the strict sanctions imposed by Western governments, as per a report by Bloomberg.

Novak, who's also in charge of energy affairs, said that Russia has the right to "mirror" the penalties imposed on the Russian economy.

The 1,222-km Nord Stream 1 pipeline runs under the Baltic Sea from Russia to Germany and is the longest sub-sea pipeline in the world.

Closure of the Nord Stream 1 could worsen the turmoil in energy markets and drive consumer prices even higher. Novak added that the pipeline is currently operating "at its full capacity" and a decision on closing the pipeline to Germany is yet to be taken.

(With inputs from Al Jazeera and Bloomberg.)