Daniel Thomas is a business reporter.
Image source, AFPIf the West goes ahead with a ban on Russian oil, Russia may close its main gas line to Germany.
Alexander Novak, the deputy prime minister, said that if Russian oil were dumped, prices would double to $300 a barrel.
The US is considering a ban with allies as a way of punishing Russia.
The plan was rejected by Germany and the Netherlands.
40% of the EU's gas and 30% of its oil comes from Russia, and there is no easy substitute if supplies are disrupted.
In an address on Russian state television, Mr Novak said it would be difficult to find a replacement for Russian oil on the European market.
It will take a long time and it will be more expensive for European consumers. He said that they would be hurt the worst by this outcome.
He said that an oil embargo could prompt reprisals after Germany decided to freeze certification of the new gas line.
He said that they have the right to impose an embargo on gas pumping through the existing Nord Stream 1 gas line.
Russia is the world's top producer of natural gas and second top producer of crude oil, and any move to sanction its energy industry would badly damage its own economy.
There are concerns that banning it would cause prices to go up. At one point on Monday, the price of crude oil reached $139 a barrel, its highest level in almost 14 years.
The average price of petrol in the UK hit a new record.
Image source, Getty ImagesAccording to the news agency, the US might be willing to go ahead with an embargo without its allies, even though it only gets 3% of its oil from Russia.
On Monday, the Chancellor of Germany dismissed the idea of a wider ban, saying that Europe had deliberately exempted Russian energy from sanctions because its supply could not be secured.
Some Western companies have boycotted Russian shipments or pledged to sell their stakes in Russian energy companies, while European powers have committed to move away from Russian hydrocarbons over time.
Russian companies are feeling the pressure of the US and European moves to lower their dependence on Russian energy even though they have fulfilled their contractual obligations to deliver oil and gas to Europe, according to Mr Novak.
He said that they were concerned by the discussion and statements regarding a possible embargo on Russian oil and petrochemicals.
We see our partners, traders, shipping companies, banks and financial institutions coming under enormous pressure.
The third round of peace talks between Russia and Ukraine made little progress.
More than 1.7 million Ukrainians have fled to Central Europe since the conflict began in February, according to the United Nations refugee agency.
Russia would stop operations if Ukraine ceased fighting, amended its constitution to declare neutrality, and recognised the independence of regions held by Russian-backed rebels, according to the Kremlin spokesman.
A Ukrainian negotiator said that although there had been some progress on the issue, things remained the same.
"As of now, there are no results that significantly improve the situation," Mykhailo Podolyak said.
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