The decision to embargo Russian oil and gas has the least economic damage for the US, which has been recording since the beginning of the war in Ukraine, the least damage and the greatest benefits, economically and geostrategically, said for his part, internationalist, head of research at the Technical University of Ukraine, Pambos Chrysostomou.[/QUOTE]
The decision to embargo Russian oil and gas has the least economic damage for the US, which has been recording since the beginning of the war in Ukraine, the least damage and the greatest benefits, economically and geostrategically, Pambos Chrysostomou said.
Asked by CNA to assess the situation as created after the US and UK restrictions on Russian oil and gas, Mr. Fessas said that each country and region will make decisions depending on its dependence on Russian gas and oil, saying that America and Britain have little dependence on Russian crude oil and gas.[/B][/B] That is why, he said, the US decisions did not affect the price of oil so much.
Fessas noted that OPEC has the ability to increase the amount of production and supply to markets. He predicted that prices will remain high for some time.
He pointed in particular to yesterday's statement by the President of the European Commission who set a target to reduce by 2/3 the dependence on Russia's gas and to increase gas storage in EU countries coming from alternative energy sources, either from LNG, America or Qatar, or more supply through existing pipelines to Europe from Norway, Azerbaijan and others.
As a strategic goal for Europe, he continued, energy transition and cleaner energy remains, but a balance must be struck between energy security and energy transition, studying the consequences for the economies of member states.
For Cyprus, Fessas said that natural gas is a clean source of energies and with the energy transition to EU targets, the role of Cypriot fields is increasing. Demand for gas will increase, he noted, saying that due to the EU's search for alternative sources outside Russia, Cypriot gas has better prospects.
He recalled that in the Aphrodite field Chevron is studying the project to go ahead, in the Glafkos field the confirmation drilling is being done, but "we have other drilling projects and we believe that with the trend that things are taking, the demand for gas will increase and this will give more incentives to investors in terms of Cypriot gas."
"Minimal consequences for US and UK from restrictions on Russian energy"
Internationalist, head of research at CFCC, Pambos Chrysostomou, analysing the benefits for the US from the decision to embargo Russian oil and gas, he said that the US President's ardent goal was to freeze or cancel the Nord Stream 2 pipeline, which the Germans objected to and "with the start of the war, it was done overnight."
Recalling Donald Trump's statement in the past that NATO 'has come full circle' and Emmanuel Macron's that it is 'brain dead', Chrysostomou said as a second benefit that NATO is currently coming back and in the eyes of many Eastern European countries it is becoming more necessary now than ever before. "The US is coming back with a leading role in Europe because it is currently playing a key role in Europe's defence and security." European autonomy in defence and security is moving further away than ever before, he added.
The need for Europe's natural energy independence from Russia, he continued, referring to the benefits for the US, is turning the continent towards other sources, including the US. US natural gas exports, he added, have skyrocketed.
According to Chrysostomou, apart from the Ukrainian people who are the biggest victim of this war, Europe will be asked to pay the "bill" and is under enormous economic and energy pressures. This makes Europe much more vulnerable energy-wise, economically and security-wise, and the role of the US for it much more important, he added.
The decision to embargo Russian oil and gas, he noted, has minimal economic damage to the US, which has very little energy dependence on Russia, and at the same time multiplies the pressures on the EU, making it more vulnerable and the US more necessary to Europe.
Responding to a question, he said that the US is comfortable with prolonging the war "as harsh as that sounds. Because the price for Europe will be higher, the need for NATO's presence even more pronounced in the eyes of many former Eastern countries, the need to sell military equipment from the US to the countries of Europe just as great." The need for the EU's energy independence from Russia, he continued, will bring it closer to the US. "As the war is prolonged, Russia's wounds are greater. It is getting weaker and that strengthens and suits the US."
Asked to comment on the fact that US rating agencies give the Russian economy a chance of bankruptcy and whether he believes it is possible, Pambos Chrysostomou replied "not at the moment. But if the war continues in the long run, this may possibly be debatable one day."
Source: CNA
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