President Vladimir Putin stated that Western nations erred in placing energy sanctions on Russia and warned that additional restrictions would have disastrous effects on world markets.
Speaking at a meeting with government officials that was broadcast on Rossiya 24 TV, Putin said on Friday, ‘Sanctions restrictions on Russia cause much more damage to those countries that impose them. Further use of the sanctions policy may lead to even more severe, without exaggeration, even catastrophic consequences for the global energy market’.
After the West implemented three waves of sanctions against Russia in punishment for its invasion of Ukraine, the price of Brent crude has increased by more than a third and the benchmark price of European gas has more than quadrupled since the beginning of the year. The ensuing energy shortage has slowed down global economic expansion and raised prices, increasing the likelihood of a recession.
These actions were intended to block the flow of petrodollars into the Kremlin’s coffers and pressure Putin to end the conflict, but, in response, Russia has redirected its oil exports to China and India and restricted gas deliveries to Europe. According to the president, the energy sector of his nation has finally stabilised, with daily oil output increasing by 0.5 million barrels to 10.7 million in June.
Putin addressed his cabinet, which included Igor Sechin, the CEO of Russian oil giant Rosneft PJSC, as well as Deputy Prime Minister Alexander Novak, saying that Western countries’ efforts to identify alternatives to the Russian energy supply won’t provide rapid results.
‘We see that the West is trying to force other oil-exporting countries to increase their production volumes’, Putin said. Yet the global energy market ‘does not tolerate any rush. The already made mistakes cannot be corrected within a couple of days’, he said.
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