Analyst Warns of ‘Catastrophic Effect’ of Anti-Russian Sanctions on Global Energy Market

The West made “numerous mistakes” when sanctioning Russia due to its ongoing special operation in Ukraine, Earl Rasmussen, Executive Vice President of the Eurasia Center in Washington, DC, has told Sputnik.

“The removal of Russian oil from Western markets cannot be easily replaced. Russia is too critical to the global supply chain and will take years to even attempt to fill the void […]”, Rasmussen pointed out.

According to him, many Western “leaders” do not realize the fact that “pipelines and refineries will require changes which will result in significant cost and time.” The Eurasia Center’s vice president suggested that “it will take years to provide the needed infrastructure required.”

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He also warned of the “catastrophic effect” of the West’s anti-Russian sanctions on “the global energy market,” cautioning that the sanctions “will affect economies broadly as well leading into a major recession and unfortunately a de-industrialization of many countries, primarily in Europe.”

Touching upon Moscow developing opportunities for growth amid the sanctions, Rasmussen said that he shares Russian President Vladimir Putin’s view that the country’s energy companies should look and develop new markets in the east and south.

The Eurasia Center’s vice president called for Russia’s “continued cooperation with China and India as well as other emerging areas such as Vietnam. Indonesia, Singapore and Central Asian countries.”

“Seeking opportunities and cooperation with emerging African and South American countries should also be viewed positively. Moreover, partnering with China in developing the countries as part of Belt and Road Initiative may also be considered,” he added.

The comments came after President Putin stated on Friday that the anti-Russian sanctions inflict more damage on those who imposed them than on Moscow.

“We know that Europeans are trying to replace Russian energy resources, but the result of such actions is predictably an increase in gas prices in on-the-spot markets and an increase in the cost of energy resources for consumers, including households,” Putin said during a government meeting.

He underscored that he had repeatedly warned his foreign colleagues about the consequences of slapping sanctions on Russia, particularly when it comes to the energy market, but that his warnings “fell on deaf ears.”

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The Russian president also stressed that “the so-called economic blitzkrieg that our detractors have planned for us has failed.”

On February 24, Russia launched a special military operation to demilitarize and de-Nazify Ukraine after Donbass republics requested help to defend them from attacks by Ukrainian troops. The US and its allies responded by imposing a set of “severe” sanctions against Russia, with the EU pledging to end its dependence on Russian energy supplies. Subsequent disruptions in logistical and financial operations have undermined supply chains and led to a spike in energy prices worldwide, also resulting in record inflation in the US and beyond.