Russian Deputy Prime Minister Alexander Novak warned that oil costs would spike to not less than $300 per barrel ought to the West ban Russian oil.

In a Monday speech on state tv, Novak mentioned a ban would create "catastrophic penalties for the worldwide market," CNBC reported.

The feedback come only a week after Russia's invasion of Ukraine prompted oil costs to surge above $100 a barrel. With Russia one of many world's high oil producers, nations around the globe have been feeling the consequences of the worth will increase.

In the US, fuel costs hit a report excessive on Tuesday, topping the earlier report set in 2008, simply earlier than the recession and housing market collapse.

Novak additionally talked about Germany's current determination to cease the certification of the Nord Stream 2 fuel pipeline, saying that Russia would have "each proper to take an identical determination" by imposing an embargo on the Nord Stream 1 pipeline.

The Nord Stream 2 pipeline from Russia to Germany is full, however Germany's ultimate approval has been placed on maintain following Russia's actions in Ukraine. Russia's shelling on Ukrainian cities and villages is about to enter its third week.

The Swiss firm behind the Nord Stream 2 pipeline needed to file for chapter and let its workers go because of the sanctions.

The Nord Stream 1 pipeline has been supplying Germany with fuel since 2011, and has the capability to produce the European Union (EU) with 55 billion cubic meters of fuel a 12 months for not less than 50 years, in line with its web site. Nearly all of Germany's fuel comes through Nord Stream 1, which means that if use of the pipeline was halted, it will trigger "a severe blow" to Germany's financial system, Reuters reported.

Forty p.c of the EU's fuel comes through Russian pipelines, a couple of of which run by way of Ukraine, CNBC added.

In his speech, Novak mentioned that up to now, Russia is not going to be "taking such a call" to shut Nord 1 however added that "European politicians with their statements and accusations in opposition to Russia push us in the direction of that."

He additionally mentioned the leaders of Western nations ought to warn their residents concerning the coming spike in vitality costs.

"If you wish to reject vitality provides from Russia, go forward," he mentioned. "We're prepared for it. We all know the place we may redirect the volumes to," with out specifying the place.

Regardless of the record-breaking fuel costs within the U.S., a ballot performed by Quinnipiac College discovered that 71 p.c of U.S. adults could be in favor of a ban on Russian oil imports.

Replace 3/8/22, 12:59 p.m. ET: This story was up to date with further info.

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Russian Deputy Prime Minister Alexander Novak warned that oil costs would spike to not less than $300 per barrel ought to the West ban Russian oil.Inventory Picture/Getty Pictures