This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.co.uk/news/58888451

The article has changed 47 times. There is an RSS feed of changes available.

Version 27 Version 28
How reliant is the world on Russia for oil and gas? Russia sanctions: Can the world cope without its oil and gas?
(30 days later)
Energy costs have risen since Russia's invasion of Ukraine The European Union has agreed to ban all Russian oil imports which come in by sea.
The European Union plans to ban all purchases of Russian oil by the end of the year. It says new sanctions against President Putin's "war machine" could cut the amount of oil it buys from Russia by 90%.
But there is no consensus yet among EU members on stopping imports of Russian gas. The US and UK have also announced bans on Russian fossil fuels.
What oil and gas sanctions are there? How severe are the EU sanctions?
European Commission President Ursula von der Leyen has announced that EU countries have been banned from buying Russian oil after the end of 2022. Russia has been supplying about a quarter of the oil EU countries import. That is about 2.2 million barrels per day of crude oil and 1.2 million barrels of oil products.
EU members Hungary and Slovakia will be able to continue buying Russian crude oil until the end of 2023. According to the Carnegie Endowment, a US think tank, this has been earning Russia more than $1bn (£800m) a day.
In March, the EU committed to reducing gas imports by two-thirds within a year. Negotiations are ongoing over a further phase out. The EU plans to ban Russian oil imports arriving by sea by the end of this year. This would cut EU nations' oil imports from Russia by two-thirds.
The US has declared a complete ban on Russian oil, gas and coal imports, and the UK is to phase out Russian oil by the end of the year. The EU will continue to allow 800,000 bpd of oil imports brought in by pipeline, as a "temporary measure".
Russia has warned that banning its oil would lead to "catastrophic consequences for the global market". That's because countries like Hungary and Slovakia depend on it.
Despite sanctions, Russia has almost doubled its monthly earnings from selling fossil fuels to the EU, according to the Centre for Research on Energy and Clean Air. However, Germany and Poland - which also import Russian oil by pipeline - say they will stop doing so by the end of this year.
The EU has imported about €22bn ($23bn) of fossil fuels per month from Russia since the start of the war as oil and gas prices have soared, compared with an average of about €12bn ($12.5bn) a month in 2021. European Commission President Ursula von der Leyen says that after this, Russia will only be exporting "10 or 11%" of the oil it had previously been selling to EU states.
How much oil does Russia export? In addition to the EU's measures, the US has declared a complete ban on Russian oil, gas and coal imports. The UK is to phase out Russian oil imports by the end of the year.
Russia is the world's third biggest producer, after the US and Saudi Arabia. What sanctions are being imposed on Russia?
About half of Russia's crude oil exports went to Europe, before sanctions were announced. What impact could oil sanctions have on Russia?
In 2020, the Netherlands and Germany imported the most Russian oil per day. The EU has called its sanctions a "landmark decision to cripple Putin's war machine".
Slovakia and Hungary - who will be given an extra year to find alternative suppliers - received 96% and 58% of their oil imports respectively from Russia last year, according to the International Energy Agency (IEA). Helped by soaring energy prices, Russia received an estimated €400bn ($430bn, £341bn) over the past year from oil and gas exports to Europe.
Russia accounted for just 8% of UK oil imports in 2020 and 3% of US oil imports last year. The EU hopes it will lose a big chunk of this revenue.
What are the alternatives to Russian oil? However, its sanctions will take several months to come into full effect, and even then Russia will be able to sell its oil elsewhere around the world.
Research analyst Ben McWilliams says it should be easier to find alternative suppliers for oil than for gas, because while some comes from Russia, "there's also a lot of shipments from elsewhere". "Countries in Asia might buy up to one million barrels per day more crude oil from Russia than they are taking now," says David Fyfe, chief economist with energy data firm Argus Media.
Some countries, members of the IEA, have released the equivalent of 120 million barrels from oil stocks - the largest release of reserves in its history. "As a result of all the sanctions announced so far, Russia may lose between one third and a half of its total oil revenues, but not all of them."
At the end of March, US President Joe Biden ordered a major release of oil from America's reserves in an effort to bring down high fuel costs. Will Europe go short of oil?
The US also wants Saudi Arabia to increase its oil production and is looking at relaxing sanctions on Venezuela's oil. A lot of European nations could have their oil supplies squeezed by the ban on Russian imports.
How has Russia halted gas flows? Lithuania and Finland got about 80% of their oil from Russia in November last year.
Despite the invasion of Ukraine, Russia has continued to supply a large amount of gas to many European countries. However, EU countries can always buy oil from other producers.
However, after Western powers placed financial sanctions on Russia, President Putin announced that "unfriendly" countries would have to pay for gas in the Russian currency. Added to this, more oil is being put onto world markets.
The Russian-state-owned energy company Gazprom cut off supplies to Poland and Bulgaria and says it will not restart these until payments are made in roubles. The IEA - a club of oil importing countries - have released 120m barrels-worth of crude from their stocks. US President Joe Biden ordered a major release of oil from America's reserves.
The EU has said it considers Russia's action to be a form of blackmail. "Nations like Saudi Arabia might start putting more oil onto the world market later in the year, and there could be more supplies from the US," says Kate Dourian, fellow at the Arab Gulf States Institute in Washington, DC.
Many other EU countries are set to face the same issue around mid-May when payments are due. How much does Europe rely on Russian gas?
Payments in roubles would shore up the Russian currency and benefit its economy. Russia supplies the EU with 40% of the natural gas it imports.
Who's paying in roubles? Its government has been taking advantage of the hold over European nations this gives it.
Ms Von der Leyen warned that complying with Russian demands would breach EU sanctions and would be "high risk" for companies that did so. President Putin demanded that "unfriendly" nations in Europe pay for gas in roubles, to help him prop up the value of the currency.
EU countries are split on how soon they wind down dependence on Russian energy supplies. Poland, Bulgaria and Finland refused to do so and Russia cut off their supplies. The EU has said it considers Russia's action to be a form of blackmail.
Gas companies in some EU countries, including Germany, Hungary and Slovakia, have agreed to pay for gas in euros through Russian bank Gazprombank, which will then convert the payments into roubles. Will the EU sanction Russian gas?
The Financial Times has reported that gas companies in Austria and Italy are also planning to open accounts with Gazprombank. In March, the EU committed to reducing gas imports from Russia by two-thirds within a year.
The EU said last week that if buyers of Russian gas could complete payments in euros and get confirmation of this before any conversion into roubles took place, that would not breach sanctions. However, it has been hard to get agreement on any further measures, such as an outright import ban.
However there are different views among countries on how to interpret its initial guidance, and EU diplomats have said they want more clarity on the issue. Germany, Europe's largest economy, relies on Russia for almost half of its gas supply.
How much gas does Russia supply to Europe? There's doubt over whether EU nations will be able to find other gas supplies than Russia's.
In 2019 Russia accounted for 41% of the EU's natural gas imports. "It would have to turn to producers such the US and Qatar, which would ship liquefied natural gas (LNG) in tankers," says Kate Dourian.
If Russian gas supplies to Europe dried up, Italy and Germany would be especially vulnerable as they import the most gas. "But there aren't enough LNG terminals in Europe. This is will be a problem for Germany, particularly. It simply doesn't have the equipment to unload it."
Russia only provides about 5% of the UK's gas supplies, and the US does not import any Russian gas.
Russia sends gas to Europe through several main pipelines. The gas is collected in regional storage hubs, and then distributed across the continent.
The Nord Stream 2 pipeline and the Ukraine crisisThe Nord Stream 2 pipeline and the Ukraine crisis
IEA: Green energy needed to avoid turbulent pricesIEA: Green energy needed to avoid turbulent prices
What about alternatives to Russian gas?
Europe could turn to existing gas exporters such Qatar, Algeria or Nigeria, but there are practical obstacles to expanding production quickly.
The US has agreed to ship an additional 15 billion cubic metres of liquified natural gas (LNG) to Europe by the end of this year.
Europe could also increase its use of other energy sources such as wind power, but doing so is not quick or easy.
The EU hopes to massively boost its use of renewable energy, including wind power
What will happen to my heating and fuel bills?What will happen to my heating and fuel bills?
Consumers will face rising energy and fuel bills. Heating prices - already high - are likely to increase even more if Russia restricts gas exports to Europe. Consumers face rising energy and fuel bills as sanctions on Russian energy kick in.
Heating prices - already high - are likely to increase even more if Russian gas exports to Europe are restricted.
In the UK, household energy bills have been kept in check by an energy price cap.In the UK, household energy bills have been kept in check by an energy price cap.
But bills rose £700 to about £2,000 in April when the cap was increased. They are expected to reach about £3,000 when the cap is increased again this autumn.But bills rose £700 to about £2,000 in April when the cap was increased. They are expected to reach about £3,000 when the cap is increased again this autumn.
UK petrol and diesel prices have also soared, and the government has announced a cut in fuel duty as motorists struggle with record prices.UK petrol and diesel prices have also soared, and the government has announced a cut in fuel duty as motorists struggle with record prices.
Read more from Reality CheckRead more from Reality Check
Send us your questionsSend us your questions