Putin: it will be an energy catastrophe for the world
Russian President Vladimir Putin sees catastrophic consequences and energy for Europe due to protracted sanctions against his country.
“ We know that Europeans are trying to replace Russian energy resources. However, we expect the result of such actions to be an increase in gas prices on the spot market and an increase in the cost of energy resources for end consumers , ”Putin said during a televised meeting with senior officials on Friday.
The result, according to Putin, is that the sanctions will be felt more by Europe than by Russia. " Further recourse to sanctions could lead to even more serious – without exaggerating, even catastrophic – consequences on the global energy market, " Putin said.
Europe has struggled to find a sure way to punish Russia for the invasion of Ukraine without hurting it, as Europe depends on Russia for around 40% of its natural gas needs. Major European economies, such as Germany, are already grappling with the failures of power companies that source natural gas at higher cost from sources other than Russia. Europe is running wild to stock up on natural gas in depots before the start of the 2022 heating season, but is finding that these stocks are very expensive.
Russia has already turned off the natural gas tap to "hostile" countries that have not made arrangements to pay for Russian gas with a ruble account at Gazprombank. Bulgaria, Finland and Poland saw their gas flow cut from Russia, along with numerous buyers such as Orsted and Shell.
Europe is now considering imposing a ceiling on the price of Russian oil to punish Russia by limiting its revenues while maintaining its crude oil supplies, but the details are complex and would require the accession of other countries, including including China and India. Critics of the plan suggest that such a plan is foolish and has little chance of working. Indeed, none of the Commission's plans for months have been successful so far, except in damaging the European economy.
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The article Putin: it will be an energy catastrophe for the world comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/putin-sara-una-catastrofe-energetica-per-il-mondo/ on Sat, 09 Jul 2022 09:00:20 +0000.