Dy PM Alexander Novak warns restrictions on Russian supplies could lead to surge in prices

Russian Deputy Prime Minister Alexander Novak has asserted that Moscow's oil and gas cannot be replaced on the global market for about five to ten years. He highlighted that announcements of countries to not import energy resources from Russia have led to a rise in prices in the global market and warned that the restrictions will further result in prices reaching a record high, Interfax reported citing Energy Policy Journal. He stated that prices of energy resources have surged after the announcement of sanctions against Russia. 

As per reports, Alexander Novak has stated that banning the import of gas from Russia will affect the economy of Europe. Russian Deputy Prime Minister has stated that metallurgy, fertilization, petrochemistry and metallurgy of Europe will get impacted the most. Reportedly, Novak highlighted that currently, Europe has no option available other than Russia to import fuel at similar prices. Furthermore, he stated that the European Parliament's resolution regarding banning the import of Russian energy resources has mentioned that the decision requires plans aimed at ensuring energy supplies to the EU, as per the Interfax report. He added that important players in the energy sector believe that full replacement of Russian gas and oil "will hardly be possible" in about five to 10 years. 

Putin warns West against phasing out Russian supplies 

It is pertinent to note here that the Russian offensive in Ukraine has entered its day 52 on Saturday, April 16. Since Russia's invasion of Ukraine on February 24, EU nations have imposed sanctions against Moscow to pressurise Kremlin to put an end to the war. Some of the nations have even announced cutting down the use of Russian gas. However, Russian President Vladimir Putin on Thursday, 14 April, warned that the decision of the West to phase out Russian gas imports will have a negative effect on their economies, according to AP. Putin while speaking at the meeting of the Russian gas and oil sector asserted that Europe's attempts to seek alternatives to Russian gas will be “quite painful for the initiators of such policies." Putin emphasized that there is a "reasonable replacement for it in Europe now" and buying gas from other countries would "cost consumers many times more."

(Inputs from AP)