Translation. Region: Russian Federation –
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
Moscow, March 19 (Xinhua) — The closure of the Strait of Hormuz affects approximately a third of global oil and petroleum product trade, Russian Deputy Prime Minister Alexander Novak stated on Wednesday at the Moscow State Institute of Economics and Policy (MGIMO) Day.
“The 20 million barrels of oil per day that have stopped being transported to world markets today, supply to world markets, is approximately a third of world trade,” he said.
In addition, A. Novak noted that approximately 20 percent of global gas production is currently unable to be supplied to markets.
According to the Deputy Prime Minister, we are currently experiencing a major energy crisis. He noted that the consequences of this crisis include not only energy shortages and disruptions to transport and logistics flows, but also global changes in global markets.
A. Novak noted that if the world is short of oil and petroleum products, as well as liquefied petroleum gases (LPGs), a third of which was also supplied from the Middle East, this affects the shortage of resources for fertilizer production and drives up prices for electricity, coal, and gas. Rising fertilizer prices affect food prices, which in turn impacts inflation and the economy.
All of this will ultimately impact the rate of economic growth, noted A. Novak. –0–
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