Putin Says New Sanctions Would Be Catastrophic for Global Energy Markets

Putin Says New Sanctions Would Be Catastrophic for Global Energy Markets
Vladimir Putin Source: Bloomberg

Western nations made a mistake by imposing energy sanctions on Russia, and if they persist with further restrictions it will be a catastrophe for global markets, said President Vladimir Putin.

“Sanctions restrictions on Russia cause much more damage to those countries that impose them,” Putin said on Friday at a meeting with government officials that was broadcast on Rossiya 24 TV. “Further use of the sanctions policy may lead to even more severe, without exaggeration, even catastrophic consequences for the global energy market.”

  • Restrictions on Russian energy are hurting the West: Putin
  • Russia’s energy industry is stabilizing, oil production rising

The price of Brent crude has jumped by over a third and benchmark European gas more than doubled since the start of the year after the West imposed several waves of sanctions against Russia in retaliation for its invasion in Ukraine. The resulting energy supply crunch has hampered global economic growth and increased inflation, raising the risks of recession.

While the goal of these measures was to reduce the inflow of petrodollars into the Kremlin’s coffers and force Putin to stop the war, Russia has responded by redirecting its oil exports to India and China, and capping gas flows to Europe. The president said his country’s energy industry has now stabilized, with oil production rising by 0.5 million barrels a day to 10.7 million a day in June.

Attempts by Western nations to find replacements elsewhere for Russian energy supplies will not yield immediate results, Putin said, addressing members of his cabinet, including Deputy Prime Minister Alexander Novak, as well as Igor Sechin, Chief Executive Officer of Russian oil giant Rosneft PJSC.

“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,” he said. “The already made mistakes cannot be corrected within a couple of days.”

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.