DISINFO: Western sanctions on Russian energy jeopardize the global economy
SUMMARY
Unfortunately for the US and the EU, the global energy market cannot function normally without Russian oil and gas. Various energy sanctions, including the US ban on Russian fuel imports, have had no effect on Moscow, because oil supplies have been diverted to other buyers who want to buy it at a discount. Europe's latest economic attack on Russia - the imposition of a price cap on Russian oil will probably fail, because Moscow warned that it would not sell fuel at non-market prices. Even if Russia agrees to a price cap, then that cap per barrel is almost exactly the price at which Russia currently sells its oil.
RESPONSE
The article utilises the pro-Kremlin narrative on the energy crisis in Europe amid the unprovoked Russian invasion of Ukraine and belittles subsequent Western sanctions on Russia. This narrative fits well into the Kremlin's claims that the West is collapsing. The Kremlin seeks to pressure and blackmail the European governments and create public panic over energy insecurity / energy costs.
Despite recent events, Europe is prepared to face this winter. EU underground gas reserves have been filled by more than 95% of their capacity, much more than the 1 November deadline set to achieve 80% capacity. This means that with the predicted gas consumption reduction and filled gas reserves, Europe won’t be out of gas for the winter even without Russian gas. Furthermore, American LNG supplies to Europe have more than doubled this year, as EU strategically increased its orders. Europe’s LNG imports increased by 65% in the first nine months of this year, also due to fall of Asian demand for LNG, in part because of lower demand from China.
The EU has imposed unprecedented sanctions against Russia in response to the unprovoked and unjustified invasion of Ukraine on 24 February 2022 and the illegal annexation of Ukraine's Donetsk, Luhansk, Zaporizhzhia and Kherson regions. Furthermore, in December 2022, EU countries agreed to set a price cap on Russian oil at $60 per barrel. The price cap applies to oils which originate in or are exported from Russia. The cap comes on top of the EU import ban on Russian seaborne crude oil and petroleum products, and the corresponding bans of other G7 partners.
This decision aims at limiting price surges driven by extraordinary market conditions and drastically reduce the revenues Russia has been earning from oil since its invasion of Ukraine. It will also serve to stabilize global energy prices while mitigating adverse consequences on energy supply to third countries.
It is important to note that through the sanctions, the West is trying to send a strong signal of resolve and unity to the Kremlin, degrade Russia’s ability to wage war and slowly asphyxiate the Russian economy and in particular the country’s energy sector.
See more disinformation cases on energy issues amid invasion of Ukraine and sanctions towards Russia.