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Russia has threatened to suspend natural gas supplies to Europe via the Nord Stream 1 pipeline in response to sanctions imposed over the invasion of Ukraine, a move that could exacerbate the chaos in energy markets and drive consumer prices even higher.
Russia has the right to “reflect” the sanctions imposed on the Russian economy, said Deputy Prime Minister Alexander Novak, who is also in charge of energy matters, in a televised statement late Monday. He stated that no decision to shut down Nord Stream 1 has yet been made, and that the pipeline is currently functioning “at full capacity.”
As part of its retaliation to sanctions imposed over the invasion of Ukraine, Russia has threatened to halt natural gas supplies to Europe via the Nord Stream 1 pipeline, a move that might exacerbate market volatility and push up consumer costs.
Deputy Prime Minister Alexander Novak, who is also in charge of energy matters, said in a televised speech late Monday that Russia has the right to take moves that “reflect” the sanctions imposed on the Russian economy. He stated that no decision has been made to shut down Nord Stream 1 and that the pipeline is currently functioning “at full capacity.”
Many EU lawmakers, though, are leery of taking rapid action, which is one reason Germany has resisted calls for an oil import restriction. On Monday, German Chancellor Olaf Scholz stated that Russian oil and gas are “critical” to the European economy. Russia supplies almost 40% of the EU’s gas and a fifth of its oil.
If the United States and the European Union block Russian oil imports, Novak said, Russia has alternative options for selling its oil, and he warned that such a move might have “catastrophic effects for the world market,” with prices soaring to $300 a barrel or more.
