Energy prices can soar to new highs in case of Russian supply restrictions: Deputy PM

Prices for energy resources can reach historical highs in case of supply restrictions by Russia, the country’s Deputy Prime Minister Alexander Novak said in an article for the Energy Policy journal, News.Az reports.

“I emphasize that in the current situation, not even actions, but only statements about the cessation of energy supplies from Russia lead to a surge in prices on world markets. If the world encounters not hypothetical, but physical major restrictions, prices for the main types of fuel may significantly exceed already reached historical highs,” he said.

Novak stressed that high volatility and skyrocketing energy prices have been a lightning-fast response to the uncertainty caused by anti-Russian sanctions. “As a result, in March, prices for all major energy carriers rose to record highs in a matter of hours,” the deputy PM said.

He noted that today global energy markets continue to be in an uncertain state.

“If we talk about possible suppliers of coal to Europe, then the stake can be placed on the countries of South America and South Africa, but, according to experts, it will be difficult for them to provide an acceptable price due to significant logistics costs and high demand,” Novak added.


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