Ukraine Crisis: Impact On World Economy If Russia Stops Gas, Oil Export

The United States has announced a ban on the import of oil, gas and energy from Russia in order to increase pressure for showing aggression on the neighbouring country Ukraine. Energy resources are the main source of Russia’s economy and the purpose of the move announced by US President Joe Biden is to teach a lesson to Russia.

Biden has taken a big step forward to bleed Russia’s economic system. The energy sector is undoubtedly the heart of the Russian economy. It is also called the country’s blood boil.

Russia supplies oil worth $1 billion a day to the United States. The current ban is on Russian oil, LPG and coal, and also prevented Americans from doing business or investing in Russian oil and gas companies.

With this move, not only Russia and America, but the oil prices of the whole world will increase further. Although the US is much less dependent on Russian oil than Europe. About 5% (or less) of the oil was imported from Russia last year. No oil has come from Russia since January.

Russia’s economy, banking system and currency are under heavy pressure due to the sanctions imposed after the attack on Ukraine. In such a situation, if the export of natural gas and crude oil from Russia is stopped, then it will have a great impact on several countries in the coming times.

Along with this, India will also be included in the countries facing the crisis, because India also imports crude oil from Russia. Although India imports very little oil from Russia, it buys more crude oil of its needs from OPEC countries. Let us tell you that India takes only three to 4% of its total imports from Russia.

Inflation Will Increase Wildly In World

Oil prices around the world have reached their highest level since 2008. Crude oil prices touched $139 a barrel on Monday. Russian Deputy Prime Minister Alexander Novak has said that rejecting Russian oil will have a disastrous effect on the global market. He says that the price of crude oil can double to reach $ 300 per barrel, which will increase the world’s inflation wildly.

Russia is the third-largest oil producer in the world after America and Saudi Arabia. Russia accounts for 10% of the world’s oil supply. Russia exports 7-8 million barrels of crude oil and 8,500 billion cubic feet of natural gas every day. Most of it goes to the part of Europe. Russia exports 40% of gas and 30% of crude oil to the European Union.