Energy analysts have spoke out saying that if further sanctions are placed on Russia, it could have catastrophic implications on the UK energy market. When Russia invaded Ukraine, sanctions were imposed on them by western countries to reduce the resources and funding they had coming into their country. This has led Russia to retaliate by reducing supplies or putting prices up over the past few months.
Over the past few weeks leaders of European countries have started to explore the option of capping how much Russia can charge other countries for gas and oil. However, this will likely make them retaliate by further reducing exports to Europe. Reductions could cause the price of crude oil in the UK reach £380 a barrel. This would mean even higher prices on our energy market which is currently struggling.
This price capping would also mean putting a limit on availability of shipping for Russian oil globally unless the importer went by the available price ceiling. This means Russian suppliers would have to abide by the price cap to be able to sell oil to the rest of the world. However European leaders have warned that this system would not work unless all countries implement it across the EU.
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