‘It would be a major mistake.’ Biden official warns Russia against weaponizing energy
By Matt Egan, CNN Business
The Biden administration warned Russian President Vladimir Putin on Tuesday against weaponizing its energy exports during the standoff with Ukraine.
“If Putin decides to weaponize his energy supplies, it would be a major mistake,” Daleep Singh, US deputy national security advisor, said on CNBC.
The Biden official noted that Russia is “incredibly dependent” on the West as a consumer for its energy supplies, with oil and natural gas accounting for half of the country’s budget revenue and two-thirds of its export revenue.
“This is a long-term vulnerability for President Putin. If he weaponizes energy supply, that’s only going to accelerate Europe’s and the West’s diversification away from Russian energy,” Singh said, adding that it would be a “major blunder.”
Singh added that US officials are “prepared for whatever might unfold.”
Oil prices have climbed sharply in recent days in part due to concerns how Russia’s energy exports could be impacted by a full-scale conflict. JPMorgan recently warned oil could soar to $120 a barrel if there is any disruption to Russia’s oil flows.
Natural gas prices spiked in Europe last fall as Russia’s exports tumbled. Putin denied allegations in October that Russia was deliberately driving up gas prices, saying: “Russia is not using any weapons.”
US stock futures soared and oil prices tumbled on Tuesday after Russia said it’s withdrawing some troops, while continuing major military exercises.
Asked about Russia’s announcement of withdrawing some troops, Singh said: “Actions speak louder than words.”
Singh reiterated that Western powers will punish Russia if there is an invasion.
“If there’s a troop or a tank that crosses the border, we are ready to impose the most severe sanctions ever imposed on Russia in lockstep with our allies and partners,” he said.
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