Russia

Energy Crisis in Wake of Russia Invasion

March 10, 2022

Fuel prices surge

Tankers turned away by dockers

Seven ships carrying Russian Oil, gas & diesel were turned away from the UK including several using a loophole, meaning they were not covered by the sanctions. Dockers at Isle of Grain in Kent, Milford Haven and other sites refused to allow fuel to be unload sold by Russia to help pay for the invasion.

The Unite union today backs the dockers, General secretary Sharon Graham said: ‘I am very proud of Unite’s members taking a principled stand to prevent Russian oil coming to our ports.

However as the EU relies on Russia for nearly half its gas supply a cutting of its use seems critical to maintaining services. The PM is looking to source more domestic British sources especially in the North Sea and the plan is to obtain a licence for further exploration for the first time since 2019.

America and Britain push for Sanctions

This is part of a response in conjunction with the US boycott of 100b USD worth of oil which had been helping to fuel the 15B USD a day Kremlin’s invasion of Ukraine.

There is mounting pressure on Rishi Sunak, Chancellor of the Exchequer to follow suit and slash fuel duty just as Ireland has done so. Economists feel this will save people from having homes repossessed and businesses from suffering huge losses. Experts at trade Kpler, a firm tracking energy supply, confirmed the LNG has been placed in storage at the import terminals and The LNG may be redirected back to the grid and then via pipeline back to the UK.

Alternatively, the LNG can be reloaded onto a non Russian linked vessel and shipped to the UK. There is no ban on Russian molecules at the moment, only the vessels themselves’. Laura Page, trade Kelper analyst.

The British govt is determined to make this stance in order to stem the flow of gas and oil blood money from Putin which is sourcing the Russian offensive campaign. The EU has said it has enough gas to be independent of Russia until the end of winter, less than 2 weeks.

Russia promises to hit back hard following the blockade against them. Whilst Alexander Novack threatened Western Nations could send oil prices soaring to 300 USD per barrel if they ban buying from Russia.

Energy bills are spiralling in the wake of war and sanctions, affecting households in Britain to the tune of an extra 2,500 British pounds per year. Living standards are expected to slip by another 1,043 GBP per house in 2023, precipitating recession. It seems sanctions are creating a self harming scenario and the Chancellor’s spring statement on March 23rd is sure ‘under further pressure to put the economy on a semi-wartime setting’ according to Mr McWilliams