Germany still believes it cannot give up Russian energy: Hebestreit
Prices can reach $300 or maybe $500 a barrel.
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BP’s Lingen Refinery in North West Germany (Emsland) aerial view
Although Germany and Qatar struck an agreement yesterday, Sunday, for a long-term energy partnership, Germany still holds the conviction that it is not able to abandon Russian oil, according to German government spokesperson Steffen Hebestreit on Monday.
Read more: Hebestreit: Russia is a vital trading partner, not an ally
Hebestreit commented on media reports that the European Union is taking into consideration sanctions against Russian oil.
"The government remains convinced that it cannot refuse to oil imports from Russia. This is the position of the government, there is no change in it, according to my information," Hebestreit told a briefing when asked whether Berlin will disregard sanctions against Russian oil amid reports that such a decision is on the table at the EU.
Read more: Russian gas will not be replaced, EU made huge mistake - Former US colonel
Sanctions against Russia have been threatening Germany and Europe in general with not only increasing costs of living, but also impending mass poverty if Berlin were to completely shun Russian energy.
Destination diversification
According to Russian Deputy Prime Minister, Alexander Novak, Russian intends to diversify its oil supply destinations against the backdrop of Western-led sanctions on Russian oil.
"Of course, we have taken into account all scenarios, the toughest that you can imagine. We proceed from the fact that we will not allow this, we will diversify supplies. Oil, after all, is not a pipe, mostly. Basically, these are tankers, which can be delivered to other regions. Therefore, we will create logistics schemes and chains," Novak told reporters.
Read more: Russia takes measures to secure economy amid Russian oil bans
He continued to explain that in principle, companies are already engaged in this process: If the West does refuse Russian oil, prices will jump to $300 a barrel. Novak noted that the prices may even reach $500 a barrel.
As a response to the embargo, Moscow is eyeing a ban on uranium supply from Russia to the Unied States.
According to the US Energy Information Administration, around half of all uranium imports into the US come from Russia and its allies, Kazakhstan and Uzbekistan.
