Professor Emeritus of International Law Professor André Thomashausen spoke to IOL(independent online South Africa news) on the impact of the tension on South Africa and what would happen if it escalated.
“There will be a price explosion in all energy markets if Russian gas supplies shift away from Europe to be redirected to China. China is welcoming large additional LNG supplies at a low price level to reduce their own dependency on coal and achieve better CO2 reduction targets and secure lower input costs for their industries.
South Africa’s petrol price could hit R40 per litre – “In a worst-case scenario, South Africa could expect liquid fuel prices to increase to about R40 per litre,” said Thomashausen. “As Eskom energy production depends much on imported diesel, electricity prices could increase by up to 40%.” He added “This could have a devastating effect on all the parameters of the current budget and sink South Africa’s hopes for a post-Covid economic recovery,” The escalating crisis between Russia and Ukraine led to a surge in crude oil prices amid supply fears. Sanctions on Russia by the UK, US, and Europe have contributed to increasing crude oil prices.