Russian President Vladimir Putin acknowledged that the sanctions applied by the West against his country for the invasion of Ukraine are already affecting the lucrative oil and gas sector from Russia, undermining exports and raising costs for the industry.
Speaking to government officials via video link from his residence near Moscow on Thursday, Putin said payments for Russian energy exports were under pressure and that banks from “unfriendly countries” had been “delaying the transfer of funds”.
“As we have said many times, the most pressing problem here is the disruption of export logistics,” he said.
The European Union, the world’s largest trading bloc, has long resisted banning Russian oil because of its huge costs to European economies, particularly Germany’s.
But Russia’s invasion of Ukraine spurred a consensus among bloc officials and ambassadors that Europe should no longer finance the Kremlin and that it should reduce dependence on Russian energy by expanding alternative sources of supply.
The headquarters of the Russian oil company Gazprom, in Berlin, Germany. Photo: AFP
threats
A defiant Putin told Russian officials that Western countries’ attempt to replace Russian energy sources would hit the global economy and could be “extremely painful” for those looking to bypass Russian suppliers.
In addition, the Kremlin chief said, there is a shortage of natural gas available on the world market. He predicted that Europe’s shift to energy deliveries from other countries, particularly the United States, would undermine Europe’s standard of living and competitiveness and result in higher energy costs for consumers.
“There is no reasonable alternative to Russian gas in Europe,” he warned.
While it is possible for Western European countries to find alternative energy supplies, Putin said, it would take time.
Rising fuel prices, fueled in part by Russia’s invasion of Ukraine, have prompted US President Joe Biden to embrace oil, even though he entered office promising to tackle the planet’s climate crisis.
A plant that produces methanol, in Menlo, Iowa, in the United States. Joe Biden promised measures against the rise in fuel. Photo: AFP
The price of gasoline
This week, Biden traveled to Iowa to announce that the Environmental Protection Agency would temporarily lift regulations that ban summer use of a smog-contributing gasoline-ethanol blend.
The president said his administration was going to give up regulation to lower the price of gasoline for many Americans.
Alluding to such moves, Putin noted that Western countries seemed increasingly willing to abandon their green agendas and continue to rely on carbon-intensive fossil fuels.
He suggested that Russia was being used as a pretext for the United States and its allies to roll back policies aimed at promoting green energy that had proven to have a high economic cost.
“Now they have a wonderful excuse to cover up their own miscalculations and blame everything on Russia,” Putin said.
Fuente: The New York Times