By Abdulwaheb Al-Gueyed
(Report) VIENNA, March 10 (KUNA) -- The Russian military operations in Ukraine which triggered western countries to impose sanctions on Moscow have sent oil prices sky-high, with Europe receiving the biggest blow.
"Impacts of the armed conflict in Ukraine on the oil sector have exceeded all expectations, specially after imposition of many sanctions by the west which affected the world and Europe in particular," Franz Vranitzky, former Austrian Chancelloor, said.
Speaking to KUNA, Vranitzky, also an economic expert, said sanctions by members of NATO and European Union as well as the US were "the right decision" instead of engaging in "a third world war between two major powers: Russia and the US," two nuclear countries.
Benchmark Brent crude registered USD 111.14 per barrel yesterday amidst fears further sanctions would further increase prices.
Heinz Gartner, head of the center for strategic studies in Vienna, warned against rising energy prices in Europe due to the Russian military operations in Ukraine.
High tensions between Russia and the West began last December when Moscow requested security guarantees that Ukraine would not join NATO. The US and NATO refused to offer these guarantees, said Gartner, triggering military operations, which, in association with American sanctions on Russian oil, push energy prices to record levels.
Gartner, speaking to KUNA, ruled out European countries to impose sanctions on Russian oil and gas imports "because their economies are directly linked to the Russian energy supplies through Nord Stream I.
"If western countries continue importing Russian energy the prices would remain in the range of USD 125-130 per barrel," he said.
Russia, he believed, would divert its energy supplies to alternative markets like China, India, North Korea and Cuba if Europe decided to cease imports.
Western countries, added Gartner, could lessen dependence on Russian energy by two thirds by end of 2022 but a complete boycott would take up to three years.
Poland's Prime Minister Mateusz Morawiecki, speaking to reporters before coming to Vienna yesterday, said his government planned to cease imports of Russian energy and seek alternatives, including a gas pipeline across the Atlantic Ocean.
Oil and economic expert Dr. Bashir Alliya said high oil prices would affect many sectors around the globe including agriculture.
OPEC+, which includes Russia, meanwhile maintained its agreement to pump 400,000 barrels per day every month, he noted, thus preserving its unity. (end) amg.bs