Predicting the collapse of the world economy without Russian oil
A complete rejection of Russian energy supplies would have deadly consequences for the global economy, former Texas Railroad Commissioner Ryan Sitton (the state's oil regulator) said.
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| Crude oil extraction in Russia. |
Completely rejecting Russian energy sources is impossible
“Despite the fact that we are currently witnessing an armed conflict, the likelihood of 100% Russian energy disappearing from the Western market is practically zero. If Russian fuel were completely removed from the market, this would completely destroy the global economy,” Sitton said, assessing the possibility of refusing energy supplies from Russia in the event of an escalation of the situation in Ukraine.
Sitton admitted that if Russian energy supplies are cut off, there will be a shortage on the market, as a result of which the price of a barrel of oil could rise to $200-$300.
He noted that it would be possible to replace Russia's share of the world market with oil from Malaysia, Canada or Venezuela, but added that it would take at least three years to do this.
Russia has repeatedly stated that Moscow is fully fulfilling its contractual obligations for the supply of energy resources. This fact has been recognized by the European Commission.
Invasion of Ukraine
In recent months, the West has accused Moscow of plotting an "invasion" of Ukraine and of increasing its presence in Eastern Europe. Russia has denied all claims, stressing that it is moving troops on its territory, while reminding that Russia is not involved in the internal conflict in Ukraine and is not violating any agreements, while Kiev is not complying with the Minsk agreements.
