On Monday, Western leaders announced further sanctions against Russia. So far, no decision has been taken to stop the import of Russian oil and gas.
A commercial boycott of Russian oil will have dire consequences for the global oil market. This is what Russian Deputy Prime Minister Alexander Novak said.
– Novak told Russian news agencies on Monday that a price hike would not be expected – more than $300 a barrel, if not more.
A little later, he told Russian state television that Russia was threatening to stop the supply of gas through the Nord Stream 1 pipeline. The gas pipeline runs along the bottom of the Baltic Sea from Russia to Germany.
Due to the invasion of Ukraine, the German government halted the operation Nord Stream 2 Pipeline Approval. It will transport more Russian gas to Europe.
Ukraine calls for boycott
Russia has already imposed very severe economic sanctions in the wake of the invasion of Ukraine. The leaders of the United States, France, Germany and the United Kingdom announced further action on Monday.
Ukrainian President Volodymyr Zelensky has called on allies to boycott Russia’s lucrative oil and gas industry, among other things. So far, no decisions have been taken on this matter.
No position has been taken on boycotting oil
US President Joe Biden held a new digital meeting with the three European leaders on Monday. Biden, French President Emmanuel Macron, German Prime Minister Olaf Schultz and British Prime Minister Boris Johnson have again called on Russia to withdraw from Ukraine.
The White House affirmed their determination to “continue to increase the cost to Russia of its unjustified and unjustified invasion of Ukraine.”
But the press secretary in The White House said “no decision has been made” yet On the boycott of the Russian oil trade.
The Germans have put their feet on the ground
So far, there has been clear talk from Germany of not supporting a trade boycott. German Chancellor Olaf Schulz It was stated in a press release on Monday It is out of the question to stop importing gas from Russia. He stressed that Europe had deliberately refrained from including energy supplies from Russia in the sanctions. The reason is that Europe’s access to energy for heating, transportation and electricity cannot currently be secured in any other way.
He saw imports as having “great importance” for the daily life of the population and for services of public interest.
The federal government has been working with its partners inside and outside the European Union for several months to develop alternatives to Russian energy. He noted that this did not happen overnight.
Germany receives an estimated 55 percent of its gas and 42 percent of its oil and coal from the Russians.
Boris Johnson considers increasing production
British Prime Minister Boris Johnson on Monday indicated the need to increase British oil and gas production to reduce dependence on the Russians. The Guardian writes.
The Prime Minister said the UK was studying the possibility of increasing production in the North Sea. But critics say it will take decades to dramatically increase production.
On Monday, Johnson visited Canadian Prime Minister Justin Trudeau and Dutch Prime Minister Mark Rutte. After that, he said that a ban on Russian fossil energy is “on the table” to the fullest. But he also agreed with Rutte that it could not happen immediately, but had to be done step by step and that each country had to do it at its own pace.
The discussion led to a price jump
The debate over a possible trade boycott led to a sharp jump in oil prices on Monday. At one point, the price of North Sea oil was $127 a barrel. At one point, the price of North Sea oil was $139 a barrel. In the evening, Norwegian time, the price was $124.
European gas prices are down more than 50 percent to more than 300 euros per megawatt-hour, according to Infront figures cited by Reuters. E24.This is the highest level ever.
Higher prices have increased oil and gas revenues in Norway. However, the Oslo Stock Exchange also fell on Monday, as well as the major European stock exchanges.
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