Global Energy Crisis Unprecedented in Scale, Russian Official Warns

The ongoing conflict in the Middle East has triggered an energy crisis of a magnitude never seen before, according to Russian Deputy Prime Minister Alexander Novak. Speaking on the sidelines of the St. Petersburg International Economic Forum, Novak told reporters that not even the turmoil of the 20th century produced a shock this severe. His remarks were carried by the state news agency RIA Novosti.

Novak explained that global markets are losing roughly 12 million barrels of oil every day. Yet the full impact hasn’t hit consumers yet—because the world is still burning through stockpiles built up during earlier periods of oversupply. “Thanks to reserves, and because the market was previously in surplus, it hasn’t fully felt the consequences for about three months,” he said, as quoted by TASS.

Meanwhile, Kirill Dmitriev, head of the Russian Direct Investment Fund and a special presidential envoy for economic cooperation, offered a sharp critique of European energy policy. He claimed the European Union’s decision to reject Russian oil and gas has cost the bloc roughly 3 trillion euros. “Europe is finally seeing that the economic and energy crisis unfolding there is a direct result of walking away from Russian energy,” Dmitriev said.

The warnings come as global energy markets remain under intense pressure, with supply disruptions and geopolitical tensions showing no signs of easing anytime soon.