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Oil and gas is the new front in the war with Russia when the US and UK ban Moscow

The government claims the ban will affect Putin’s economy by ‘losing a valuable source of income’. Oil export tax generates 17% of Russian government revenue

A view of the Nord Stream 2 gas receiving station on the Baltic coast of Germany in Lubmin
A view of the Nord Stream 2 gas receiving station on the Baltic coast of Germany in Lubmin

The UK and the US today announced a ban on Russian oil to increase pressure on oil Vladimir Putin of the mode.

However, the UK’s lockdown will be implemented in phases between now and the end of the year, with ministers saying a delay is needed to cushion the blow to households and businesses.

This move opens a new front in the bid to separate Russiathis implies they could stop exporting gas to the EU, sending already sky-high energy bills skyrocketing.

It follows a massive fire at an oil facility in Zhytomyr following Russian attacks.

The government claims the ban will affect Putin’s economy by “losing a valuable source of income”. Oil export taxes generate 17% of the Russian government’s revenue.







Diesel pump price
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Image:

Image of the Press Association)

AFTERNOON Boris Johnson In another economic blow to the Putin regime following their illegal invasion of UkraineThe UK will be free of dependence on Russian oil throughout this year, based on our severe international economic sanctions package. ”

Business and Energy Secretary Kwasi Kwarteng in addition gratuitous military aggression will not come at a cost.

“We will continue to support the brave people of Ukraine as they stand up to the autocracy, building on our existing sanctions that have crippled the war machine,” he said. of Putin”.

The US went even further by banning Russian gas imports. chairperson Joe Biden said the move was aimed at “the main artery of the Russian economy”.







Firefighters extinguish a fire in an oil depot that Ukraine’s State Emergency Services Service attributes to Russian attacks in the Zhytomyr region
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Image:

via REUTERS)

However, he admits the US is much better equipped
countries in Europe to deal with the ban because it buys only 8% of Russia’s oil and is a major gas exporter.

The UK, too, is less dependent on Moscow’s supplies. According to No10, Russian imports account for only 8% of the UK’s total oil demand. About 60% of Putin’s oil exports go to Europe.

Although not part of the sanctions, around 5% of the UK’s gas needs
met by Russia, compared with almost 40% in the EU.

“What’s happening is pretty much the worst of both worlds,” said Nathan Piper, oil and gas analyst at Investec.

“We are seeing sanctions imposed by countries that do not import a lot of Russian oil. It won’t hurt them. But it raises the geopolitical situation
and drive up oil prices and Moscow makes more money.







Russian President Vladimir Putin
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Image:

Sputnik/AFP via Getty Images)

“Europe imports more so it will be very difficult economically.”

The ban is also likely to increase the cost of living for families as oil prices today spike to more than $130 a barrel.

There are warnings petrol prices, currently more than £1.55 a litre, could rise to £2 a litre, and energy bills could hit £4,000 a year from October.

However, a poll by the Energy and Climate Intelligence Unit found that 59 percent of people would be willing to pay more for energy bills if it helped undermine Putin’s invasion.

The United States has issued an appeal to countries to ban imports of Russian oil to starve the Kremlin of funds for its war.

But Moscow has responded, saying it could close its main gas pipeline to Germany if the congestion continues.

Russian Deputy Prime Minister Alexander Novak said: “The rejection of Russian oil will lead to catastrophic consequences for the global market,” adding that oil prices could more than double to more than $300 a barrel.

Germany and the Netherlands have rejected US pressure over an oil ban.

After crowds in London backed the policy, Iain Conn, former boss of British Gas Centrica, warned our households and businesses would remain affected as global prices skyrocket.

Earlier, Dr Jack Sharples, of the Oxford Institute for Energy Studies told MPs: “We are seeing natural gas prices in Europe as phenomenal, record-breaking.”

He said wholesale electricity prices have spiked by more than 450%, adding: “Sanctions are a double-edged sword. Putin knows there are limits
for the pain that Western governments are prepared to bear. ”

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https://www.mirror.co.uk/money/oil-gas-new-front-conflict-26420237 Oil and gas is the new front in the war with Russia when the US and UK ban Moscow

Fry Electronics Team

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