gas pipeline to Germany.
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If the West goes forward with an embargo on Russian oil, Russia has threatened to shut down its main gas pipeline to Germany.

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The rejection of Russian oil, according to Deputy Prime Minister Alexander Novak, would have “catastrophic ramifications for the global market,” forcing prices to more than quadruple to $300 a barrel.

As a means of punishing Russia for its invasion of Ukraine, the US has been discussing a possible ban with allies.

On Monday, however, Germany and the Netherlands both rejected the plan.

The EU imports over 40% of its gas and 30% of its oil from Russia, and there are no cheap alternatives if supplies are stopped.

While the UK would not be directly harmed by a supply disruption because it imports less than 5% of its gas from Russia, it would be affected by rising worldwide prices as European demand grows.

Mr Novak said it would be “impossible” to find a “quick replacement for Russian oil on the European market” in an address broadcast on Russian state television.

“It will take years, and European customers will still pay a far higher price.

They will be the ones who suffer the most as a result of this “He expressed himself.

He warned that an oil embargo may result in retaliation, citing Germany’s decision last month to halt approval of Nord Stream 2, a new gas pipeline that connects the two countries.

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He stated, “We have every right to make a matching decision and impose an embargo on gas pumping through the [existing] Nord Stream 1 gas pipeline.”

Russia is the world’s largest producer of natural gas and the second largest producer of crude oil, and any sanctions against its energy sector would be disastrous for the country’s economy.

It also provides around 10% of the world’s nickel, primarily for use in stainless steel and electric vehicle batteries.

Nickel prices on the London Metal Exchange more than quadrupled early Tuesday, breaking beyond $100,000 per tonne for the first time, before trade in the metal was halted.

Physical aluminium and nickel resources were already scarce before the Ukraine conflict.

 

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