Ben McWilliams, an energy policy analyst, has said that “rationing-style measures” will likely be needed in a future Europe that does not depend on Russian oil and gas.
The prediction came after Western nations moved to either reduce or completely stop the importation of oil and gas from Russia, with the Biden administration recently announcing a total ban on Russian oil, gas and coal imports in the United States following the 2022 Invasion of Ukraine.
The Biden administration’s move came as part of a wider package of sanctions against Russia in retribution for that country’s recent invasion of Ukraine. Russian President Vladimir Putin has described the invasion a “special military operation” to prevent state violence in the Donbass region, and the Ukrainians and international community claim it was unprovoked.
The British government said that they would phase out Russian oil by the end of the year, allowing them time to find alternative supplies, with the EU reducing all Russian gas imports by around two thirds.
Alexander Novak, the Russian Deputy Prime Minister, claimed that such a move would lead to “catastrophic consequences for the global market.”
The cost is already soaring in the US, with prices at the gas pump jumping by 11% in the past week, according to the American Automobile Association.
Europe would certainly be the hardest hit, with the EU importing half of all Russia’s oil exports, and 40% of their natural gas from the country. While the Russian oil and gas only accounts for 8% and 5% of the British market respectively, and America relying on Russian oil for 3% of demand with no gas imports, rising global prices affect all.
McWilliams said that Europe could find alternative oil suppliers, but that it is hard to substitute natural gas “because [of the] big pipes that are taking Russian gas to Europe.”
One of those potential oil suppliers could be Venezuela, who had previously also been hit with devastating American sanctions, and had been selling most of their oil to China as a result.
Far-left Democrat Representative Ilhan Omar commented on the Biden administration’s “secret” visit to the country over the weekend, which resulted in two Americans being freed, saying that she hopes the visit will help the White House understand that crippling economic sanctions do not always lead to regime change.
