January 25, 2022, 04:32pm
The Biden Administration is looking for alternative sources of fuel in the Middle East, North Africa, Asia and the U.S. because Russia could cut off shipments.
The workers are at the facility in Germany.
If the US and other NATO countries impose sanctions against Russia in the event of a Russian invasion of Ukraine, Russia could retaliate by withholding fuel supplies from Western markets, possibly relying more heavily on China, according to Biden Administration officials.
According to a White House release, the Biden Administration has approached major natural gas producers around the world to gauge their willingness to temporarily surge natural gas output and allocate extra volume for the European Union, which currently relies on Russia for a third of its fossil fuels.
According to the release, Russia has cut its natural gas supply to Europe by half.
The White House believes it will be able to cover most of the shortfall.
Senior Biden Administration officials said that if Russia is forced to limit its oil and natural gas exports to China, it would make the Russian economy less reliant on fuel.
Russia, which depends on fuel revenues for 36% of its national budget, has benefited from soaring oil prices, which hit a 7-year high of $87.51 per barrel January 18. Goldman says prices could hit $100 a barrel in 2022. The Russian Ministry of Finance reported that Russia's oil and gas revenues were $119 billion in 2021. The benefits to Russia have been offset by tension with NATO over Ukraine, which has led to fears of sanctions and supply disruptions. The MOEX Russia Index had fallen more than 15% year-to-date due to sell-offs triggered by the Ukraine crisis. The ruble fell to a 14-month low against the dollar on Monday. The activation of the Nord Stream 2 natural gas line connecting Russia to Germany would be canceled if there was a Russian invasion of Ukraine. Russia could lose tens of billions of dollars in revenue because of the delay. The EU relies on Russia for 34% of its natural gas and 27% of its crude oil.
40 billion. According to the White House, that's how much natural gas Russia supplies to Europe annually.
The Russian Prime Minister said that the world economy is focused on a gradual transition to low-carbon energy.
The US supplies fuel to Europe in order to avoid a Russian cutoff.
Russia-Ukraine Conflict: How Putin's Crisis Threatens U.S. Security.
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