“Weaponizing Energy: The Pandora’s Box Is Wide Open” – an expert commentary by Vitaly Ermakov for the Valdai Club

CCEIS expert Vitaly Ermakov gave a commentary to the Valdai International Discussion Club where analyzed the energy policy of Russia and Western countries. Key ideas:
-Energy trade has been the backbone of the overall economic relationship between Russia and the West, especially Europe, but now it appears that this era is ending;
-Amid the uncertainty about who will pay for the restoration of Ukraine, the plans to confiscate Russia’s export earnings have emerged; 
-An import tariff on the Russian energy export and schemes with escrow accounts in Western banks are among those plans; 
-The EU introduces and considers additional tough measures to reduce Russia's energy exports: an embargo on Russian coal supplies is already in place from August 10, 2022, an oil embargo is being discussed, and plans are being worked out to phase out Russian gas; 
-Due to the inelasticity of supply and demand in the energy markets, the interdependence of Russia and Europe cannot be eliminated by directives; 
-The introduction of the “gas for rubles” scheme by Russia was a pragmatic response to attempts to control export revenues from the EU, the rejection of this scheme by PGNiG and Bulgargaz has already led to a halt in direct gas supplies to Poland and Bulgaria;
-The discussed oil embargo against Russia or problems with the "gas for rubles" scheme could trigger a series of extreme disasters, politicians are raising the stakes in an energy game that could get out of hand

The full commentary is available via the link