Russia’s deputy prime minister warns of catastrophic consequences for sanctioning its oil
Australia is among another of nations that Russia has deemed “unfriendly states”, as the country’s deputy prime minister warned of “catastrophic consequences” if oil from the nation is banned as Western allies consider further sanctions.
Russia’s Deputy Prime Minister Alexander Novak has warned that a ban on Russian oil imports would have “catastrophic” consequences. Source: Getty / Sergei Pyatakov/TASSThe Russian government led by President Vladimir Putin has approved a list of “unfriendly states” that includes all European Union countries, the United States and Australia among others amid the war in Ukraine, the Interfax news agency reports.
Apart from countries, the hostile list also includes foreign territories that, according to officials in Moscow, have committed hostile actions against Russia, its companies and citizens.
According to Interfax, the list was signed by Prime Minister Mikhail Mishustin and is part of the Decree of the President of the Russian Federation issued on 5 March on the temporary procedure for fulfilling obligations with certain foreign creditors.
The list includes the 27 member states of the EU that have approved strong sanctions against Russia following its invasion of Ukraine on 24 February.
Other countries to figure in the list are: Australia, Albania, Andorra, Iceland, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, the United Kingdom, South Korea, San Marino, North Macedonia, Singapore, Taiwan, Montenegro, Switzerland, Japan and Ukraine.
Until now, the list only included the US and the Czech Republic.
In practical terms, being on the list simply means that Russian citizens, companies, or the government itself can only pay debts to any individual or company in roubles.
The Russian rouble has been recording big losses for days and on Monday it also fell significantly against the US dollar and the euro.
Moscow warns ban on Russian oil will have ‘catastrophic consequences’
Russian Deputy Prime Minister Alexander Novak warned on Monday (local time) that a ban on Russian oil imports would have “catastrophic” consequences, as Western allies consider further sanctions on Moscow over Ukraine.
“A ban on Russian oil will lead to catastrophic consequences for the global market. The surge in prices will be unpredictable — more than $300 per barrel, if not more,” Novak said in remarks carried by Russian news agencies.
Mr Novak added that it would be “impossible” to quickly replace Russian oil on the European market.
“It will take more than one year and it will be much more expensive for European consumers,” he said.
“European politicians should then honestly warn their citizens, consumers what awaits them and that prices at gas stations, for electricity, for heating will skyrocket,” he said.
Mr Novak said talks of an embargo on Russian oil creates “instability and leads to significant harm for consumers”.
He added that in retaliation for the halt on the Nord Stream 2 pipeline project, Russia could stop supplies via the Nord Stream 1 pipeline.
“So far we have not made this decision. Nobody will benefit from this,” Mr Novak said.
“Although European politicians are pushing us to this with their statements and accusations against Russia,” he added.