Moscow Threatens To Stop Gas Supply To Europe, Oil Prices Can Rise 300 Dollars Per Barrel

Illustration. (Photo: Doc. Antara)

JAKARTA - Western countries are still carrying out economic sanctions against Russia after Vladimir Putin's country has not stopped its invasion of Ukraine. This time Moscow tried to retaliate. Threatening to stop all gas supplies to Europe.

The Kremlin has threatened to cut gas supplies to Europe. The threat should not be taken lightly if western countries continue to increase their economic war against Russia by banning energy imports.

If that happens, the price of oil could skyrocket to $300 per barrel.

Currently, the increase in world oil prices has reached 120 US dollars per barrel due to the conflict between Russia and Ukraine. This clearly hits the state budget (APBN) because this figure is far from the state budget assumption, which is set at the level of USD 63 per barrel.

Russia spread the threat as European leaders prepared to meet in Versailles to discuss cutting the continent off Russian gas and oil. Moscow warns that any such move could be disastrous for global markets.

"Russia's refusal of oil will have catastrophic consequences for global markets," said Russian deputy prime minister Alexander Novak.

Russia has warned that it may stop gas flow through the pipeline from Russia to Germany in response to the halt to the opening of the controversial new Nord Stream 2 pipeline.

"We have the right to take appropriate decisions and impose an embargo on pumping gas through the Nord Stream 1 gas pipeline," Russian Deputy Prime Minister Alexander Novak said on the same occasion, quoted by Al Jazeera.

Nord Stream 2 is a 1,200 km pipeline under the Baltic Sea, which will carry gas from the Russian coast near St Petersburg to Lubmin in Germany.

Russia's state-owned energy giant Gazprom bears half of the costs and western energy companies such as Shell and France's ENGIE pay the rest.

Nord Stream 2 runs parallel to the existing gas pipeline, Nord Stream, which has been working since 2011.