As the crisis between Russia and the West concerning Ukraine intensifies, European fears of rising oil and gas prices are growing, while Washington hints at painful sanctions against Moscow. U.S. Treasury Secretary Janet Yellen announced that the U.S., in collaboration with European nations, is preparing to impose coordinated sanctions on Russia if it invades Ukraine. In an interview with AFP, she stated that the objective of these sanctions is "of course to impose the greatest cost on Russia," but she added that this step would have "some global repercussions."
Yellen clarified that the Treasury is coordinating with European allies on a set of severe financial sanctions that could target "individuals or companies" in Russia and "certainly may include export controls." She described these measures as a "very large package of sanctions that will have dire consequences on the Russian economy." However, she acknowledged concerns regarding "the potential impacts on energy markets, given Russia's important role as an oil exporter to global markets and natural gas to Europe."
Nevertheless, she emphasized that the U.S. administration is "working with its European allies to try to protect them as much as possible from any excessive impacts" by ensuring "the continued flow of oil and gas." EU officials announced yesterday that they have secured alternative gas sources, affirming their capability to withstand any supply pressure from Moscow.
Oil prices have surged sharply in recent weeks, reaching $96 per barrel yesterday! It’s worth noting that amidst the potential for war and threats of Russia halting energy supplies, oil prices have risen significantly in the past weeks, hitting their highest level since 2014. Natural gas prices have also been more volatile, increasing last week after a drop earlier this month.
