The price of oil could rise to $300 per barrel if EU countries choose to ban Russian oil exports, Russian Deputy Prime Minister Alexander Novak warned on Monday.
Russian news agency TASS reported Novak as saying that if there is a refusal of Russian oil, then oil prices would reach $300 per barrel or even $500 per barrel.
Novak also confirmed that Russia will diversify its oil supplies from West to East to establish new supply chains.
"Russian oil companies are already doing this. If oil is sold at a discount, then they will be happy to buy it like today. Maybe we will earn less. We will try our best not to reduce exports," Novak said.
Novak said the move by the US and UK to halt Russian oil purchases had “little effect because our shipments to these countries are low. We were shipping 3% of all our oil exports to the US," he said.
Asked if Russia would consider a ban on the export of uranium from Russia in retaliation to US sanctions, Novak said the issue “is also on the agenda.”
Earlier on Monday, Kremlin spokesman Dmitry Peskov also cautioned that if EU countries impose an embargo on Russian oil exports, energy access for EU countries and global markets will be “seriously” hit.
Russia is the third-largest oil producer, which is dependent on fossil fuel exports for 40% of its federal budget and supplies approximately 8% of global demand.
Europe relies on Russia for a quarter of its crude oil, which in 2021 reached almost €5.8 billion, according to a new tracking tool by Europe Beyond Coal along with the Centre for Research on Energy and Clean Air.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr