Singapore reported a loss of $5.7 billion due to fluctuations in energy prices

According to the Prime Minister of Singapore, the country imports almost all types of energy, so the current crisis could lead to higher prices and recession

Singapore Prime Minister Lee Hsien Loong

Fluctuations in world energy prices in the past few months have already cost the government and the people of Singapore 8 billion Singaporean dollars ($5.7 billion). Prime Minister Lee Hsien Loong made the announcement on Sunday, The Straits Times reported. pointed out by the head of government.

According to him, the republic imports almost all energy resources, so fluctuations in their prices have already cost the treasury and ordinary residents a record $5.7 billion. “Global [economic] growth will slow down. Perhaps there will be a recession in the next two years, we need to accept this reality, — said Lee Hsien Loong.

He also stressed that the strategy of reorienting to the domestic market and increasing domestic production is suitable for large countries, but Singapore cannot afford it. “Our strategy is to stay open and make the economy more resilient and stronger,” noted the prime minister.

The rise in world prices for oil, gas and other fossil fuels has been going on since the end of February, when Russia announced the start of a special military operation in Ukraine. In this regard, many Western countries imposed sanctions against Moscow, which affected financial and industrial organizations, the supply of high-tech products, as well as the reserves of the Central Bank.

On March 8, the United States imposed an embargo on the purchase of Russian energy resources. The decision was announced by US President Joe Biden. “Today I am announcing that the US is targeting major sectors of the Russian economy: we are banning all imports of Russian oil, gas and energy. This means that Russian oil will no longer be accepted in American ports, — he said.

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Since the beginning of the military operation, the European Union has also introduced several packages of sanctions against Russia. In the last— fifth package, — The EU banned the import and transit of coal from Russia, but the restrictions did not affect gas and oil. The fact that the European Commission is preparing the sixth package of sanctions against Russia, which implies restrictions on the oil sector, was announced in mid-April by the head of the European Commission, Ursula von der Leyen.

The Russian authorities have repeatedly called the sanctions illegal and warned that in case of refusal to Russian oil and gas, the West will have to face a sharp rise in prices.

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