Embargo on oil imports would hurt EU and not US, warns Kremlin as EU ministers push for Russian oil sanctions

Oil prices jumped $3 on Monday, with Brent above $110 a barrel, as European Union nations consider joining the United States in a Russian oil embargo, while a weekend attack on Saudi oil facilities caused jitters.

FPJ Web DeskUpdated: Monday, March 21, 2022, 05:58 PM IST
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The Kremlin on Monday said that the oil sanctions on Russia will have a dire effect on the European Nations and it is less likely to cause problems in the US as some European Union foreign ministers push for an oil embargo as part of a possible fifth round of sanctions against Russia, news agency Reuters reported.

Speaking to the reporters, Kremlin spokesperson Dmitry Peskov said the question of any oil embargo was a very complex topic.

"Such an embargo would very seriously impact the global oil market, very badly impact energy balance on the European continent," Peskov told reporters on a daily conference call, Russian news agency TASS reported.

“Americans would remain as they are and would feel much better than Europeans (in the event of oil embargo). This would be hard for Europeans -- such a decision would hit everyone,” Peskov said.

For the 27 EU countries, which relies on Russia for 40 per cent of its gas, Moscow has warned that the EU sanctions on Russian oil could prompt it to close a gas pipeline to Europe.

Oil prices jumped $3 on Monday, with Brent above $110 a barrel, as European Union nations consider joining the United States in a Russian oil embargo, while a weekend attack on Saudi oil facilities caused jitters.

Yemen-based Houthi rebels launched multiple attacks on Saudi oil facilities, destroying a few of them completely. Iran-backed Houthi rebels fired multiple missiles and drones in Al-Shaqeeq run by Aramco in Jizan.

Striking harder at Russia’s economy, President Joe Biden earlier this month had ordered a ban on Russian oil imports in retaliation for Vladimir Putin’s onslaught in Ukraine. Biden had said that the U.S. was acting in close consultation with European allies, who are more dependent on Russian energy supplies.

Russia’s war in Ukraine went from a threat to reality in late February causing crude oil prices to rise above $100. Over the following two weeks, crude oil prices climbed steadily as the U.S. and its western allies imposed crippling sanctions on Russia.

(with sources inputs)

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