Benjamin
The Living Force
From RT:
Moscow warns of $500-a-barrel oil
21 Mar, 2022 12:55
Warning comes as EU prepares to consider placing embargo on Russian crude
Oil prices will jump to $300 a barrel if the West abandons Russian oil, the country’s Deputy Prime Minister and former energy minister Alexander Novak said on Monday, adding that “some see it possibly reaching $500 a barrel.”
The warning comes as the EU plans to discuss placing an embargo on Russian crude as part of its fifth set of sanctions aimed at putting more pressure on Moscow to stop its military operation in Ukraine.
Novak added that if Western consumers stop buying Russian crude, the country will diversify its supplies and will find buyers elsewhere.
Oil prices have risen by nearly $4 a barrel on Monday, with global benchmark Brent exceeding $112 by midday GMT, on expectations that the European Union might join the United States in banning imports of Russian crude.
Dutch Prime Minister Mark Rutte, meanwhile, has called such an embargo “unrealistic,” pointing out that EU countries still heavily depend on Russian oil and gas and cannot simply cut themselves off on short notice.
“Too many refineries in the eastern and western part of Europe still completely depend on Russian oil and with gas it’s even worse,” Reuters quoted Rutte on Monday as having said, ahead of the expected debate by EU foreign and defense ministers in Brussels.
German truckers protest rising fuel prices (VIDEO)
21 Mar, 2022 14:19
Hamburg police reported that 250 vehicles took over roads, with banners demanding “fair diesel prices”
A convoy of truckers deliberately blocked traffic in Hamburg, Germany over the weekend, as part of a protest against high fuel prices. Police reported that around 250 vehicles were involved in the demonstration, while the hauliers disputed the figure, claiming up to 350 vehicles took part.
Banners attached to the trucks declared “Systemically relevant truckers need fair diesel prices” and “Diesel rip-off: Without us, this country would be on the ground,” as the truckers moved from Hamburg-Allermohe towards the city center.
The protests created traffic delays for a second weekend in a row, with a protest the previous weekend having seen 500 participants moving through the city to create chaos on the roads.
The German Fishing Association also claimed on Tuesday that the price of marine diesel has doubled in recent weeks. Higher fuel costs have hit truck drivers in Hamburg, causing operational issues for drivers and companies that rely on the vehicles to transport produce across Germany and other nations.
Fuel costs have increased in Germany and in other Western nations in recent weeks following Russia’s military assault on Ukraine. Sanctions imposed on Moscow have impacted the flow of oil and gas from Russia, sending costs in the West spiraling upwards and forcing nations to seek out alternative supply routes to satisfy their dependence on foreign fuel.
The protest on Germany’s roads contrasted with another demonstration in another part of the country, by climate protesters Fridays for Future, who unveiled a 400-square-meter banner calling for a “Climate Strike” on March 25. The group stated that there is an “urgent need” for action to address the impact of climate change, including the levels of fuel usage in various countries.
Russia should consider legalizing crypto mining – deputy PM
21 Mar, 2022 15:16
The activity could be regulated and taxed, Alexander Novak suggested
Legalizing cryptocurrency mining and introducing legislation to make it a business activity in Russia would make sense, Deputy Prime Minister Alexander Novak said on Monday.
“My personal opinion is that we should legalize it and introduce it into the tax system. We have capacity for that. It is important to have a legislative framework for it,” he said. Earlier, the Energy Ministry had said that miners should be charged an adequate fee for connection to power and consumption.
Russia’s Finance Ministry in February submitted draft legislation tailored to fill the regulatory gaps in the country’s crypto space. Under the proposed law, the use of cryptocurrencies as a means of payment would remain prohibited and the digital coins would be regarded mainly as an investment tool. The Bank of Russia suggested earlier this year that cryptocurrency mining should be banned, citing possible risks for the country’s economy.
Sanctions imposed on Russia following its military operation in Ukraine have cut the country off from the Western financial system, frozen its assets abroad, and banned imports of dollar- and euro-denominated currency into the country. This has forced Moscow to find alternative currencies for trade with its partners.
Empty shelves, price hikes, car shortages: Sanctioning Russia proves costly for the West
21 Mar, 2022 16:49
Rising costs lead to hoarding and protests in parts of Europe
The unprecedented sanctions against Russia have pushed energy costs higher in Europe and the US, driving record inflation and making it ever more expensive for farmers and truckers to fuel their machinery, afford fertilizer or keep up with other costs. In Europe, which is dependent on Russian oil and natural gas, the sanctions have worsened an energy supply crunch that has driven up costs for households and businesses. RT looks at what life without Russia is like for the West these days.
High energy costs trigger unrest
People have been protesting across the EU as the cost of diesel and gasoline has become prohibitively expensive. Thousands of truckers began an indefinite strike in Spain last Monday, leading to traffic jams and picketing across the country. A few truck companies in Spain stopped operating due to high costs resulting in job losses for some. In Italy, a liter of gasoline and diesel now cost more than two euros due to sanctions. France has also been hit with protests against soaring fuel prices. Hundreds of protesting farmers blocked traffic in central Athens to demand the government grant them additional concessions to cope with higher energy costs. In the US, consumers now have to pay at least twice as much for gasoline after Washington announced an embargo on energy imports from Russia.
Empty shelves at grocery stores
The trucker strikes have caused supply problems that are impacting the food industries of entire countries. Images of empty shelves at grocery stores are becoming more common in Europe as supplies of basic foodstuffs and products have been affected.
Governments warn against panic buying
Some retailers had to limit the sales of certain products to prevent customers from buying more than “normal household quantities.” Governments insist the supply shortages are a “hoax” and call on people not to panic buy. Experts say that uncertainty in the market is likely to continue, and that the situation could even worsen in the coming weeks.
Skyrocketing food prices
Global food prices, which have already been surging due to the coronavirus pandemic, skyrocketed further amid the crisis in Ukraine. Russia and Ukraine are critical global suppliers of wheat, as well as sunflower, rapeseed, flaxseed, and soy used for cooking oils and in animal feed. Russia and Belarus, which also faces Western sanctions over the crisis in Ukraine, are key global suppliers of fertilizers. The resulting surge in fertilizer prices means farmers worldwide are facing higher costs to grow crops. In Italy, prices for pasta, flour and vegetables have risen sharply, with sunflower oil prices surging the most, by 19%. Data from the national agriculture trade organization, Coldiretti, shows that the cost of bread has almost doubled since November, to its current €8 per kilo. Some German supermarket shelves have been stripped bare of cooking oil and flour, as they were back in March 2020 when the Covid pandemic started. Most recently, the cost of cooking oil has risen significantly, with a cheaper bottle now costing almost €2, up from less than €1 just a few months ago.
Global auto market in trouble
The Ukraine crisis has added to the pains suffered by automakers, who had been grappling with high prices due to Covid-related disruptions, including semiconductor shortages. This week major car manufacturers announced they will shut down plants in Europe and raise prices further as supply issues mount. In the United States, prices of used vehicles are currently far above historical norms amid a shortage of new cars and trucks. Russia and Ukraine are significant suppliers of critical commodities to the auto industry like neon gas, aluminum, platinum and palladium, and of components like harnesses. Auto market data provider S&P Global Mobility said last week that the Russia-Ukraine conflict and rising prices for commodities will result in five million fewer cars being built over the next two years.
Europe’s anti-crisis calls
The prime ministers of Spain, Portugal, Italy and Greece met on Friday to call for an urgent European Union-wide response to the energy crisis to come out of the upcoming European Council meeting. The Spanish government says it plans to introduce measures against high energy and fuel prices later this month. The anxiety in Europe is exacerbated by the fear that Russia will eventually respond to Western sanctions by cutting off energy supplies to the continent, sending their economies into recession.
