Russian oil and gas will not be replaced on the world market in the horizon of five to ten years, even statements about the cessation of energy supplies from Russia lead to price spikes on world markets, while physical restrictions are fraught with new historical records, Russian Deputy Prime Minister Alexander Novak said in an article published in the journal Energy Policy.

He noted that after sanctions were imposed on Russia, an unprecedented surge in energy prices and high volatility was recorded as early as March.

“At the peak, the cost of gas reached almost $4000 per thousand cubic meters, oil was approaching $140 per barrel, coal was trading at $460 per ton. And experts are sure that this is not the limit. Today the world energy markets continue to be in an uncertain state,” said Deputy Prime Minister.

Commenting on plans to impose new sanctions on imports of Russian energy resources by Europe, Novak noted that the share of oil supplies to EU countries from Russia reaches 30%, gas – 40%, and the share of Russian coal in the total imports of Europe is about a third of all purchases.

He noted that Europe has tried to reduce dependence on Russian gas with the help of coal, the price of which has also increased. Novake also pointed to the instability of renewable energy sources (RES), which are meant to replace gas. The Russian Deputy Prime Minister also recalled that OPEC said it would not be able to compensate for the decline in Russian oil supplies to the world market.

Thus, Novak noted, “a reasonable alternative to energy sources from Russia hardly exists today.”

“I emphasize that in the current situation, not even actions, but only statements about the cessation of energy supplies from Russia lead to a surge in prices on world markets. If the world faces not hypothetical but physical major restrictions, prices for major fuels may significantly exceed the historical highs already reached,” summarized the Russian Deputy Prime Minister.