Oil is all that Putin has left, U.S. presidential advisor Amos Hochstein says

Oil is each Russia's system has near pursuing its penetration of Ukraine earlier this year, according to Amos Hochstein, peculiar statesmanlike coordinator for President Joe Biden.

"Oil is the lone happening they person near successful that system … Putin has destroyed the remainder of the economy," Hochstein told CNBC's Hadley Gamble Monday.

"All he's got near is the worldly that comes retired of the ground. He won't merchantability his state to Europe anymore, truthful each helium has is oil, truthful that's what funds this war."

The Russian Embassy to the U.K. was not instantly disposable to respond to the comments erstwhile contacted by CNBC.

The Russian system shrunk by 4% year-on-year implicit the 2nd quarter, and the Central Bank of Russia expects the downturn to deepen successful the quarters ahead. The International Monetary Fund expects Russia's GDP to declaration by 3.4% successful 2022.

Hochstein's comments, from the ADIPEC league successful Abu Dhabi, travel astatine a volatile clip for vigor markets pursuing Russia's penetration of Ukraine successful Feb. 2022.

Russia was the biggest supplier of some earthy state and petroleum oils to the EU successful 2021, according to Eurostat, nevertheless state exports from Russia to the European Union person slid this year.

"Despite disposable accumulation and transport capacity, Russia has reduced its state supplies to the European Union by adjacent to 50% y-o-y since the commencement of 2022," according to the International Energy Agency.

As such, Hochstein stressed the value of acting present to guarantee a much unafraid situation for the improvement of aboriginal technologies wrong the vigor sector.

"Fortunately oregon unfortunately, vigor contiguous is the fig 1 contented successful the world," helium said. "And you know, we're present talking astir lipid and gas, but the vigor modulation — look what we conscionable passed successful the United States, the largest clime investment, which matches good with what countries similar the UAE is doing, and immoderate different countries astir the world."

He added that these investments, into proviso chains and the aboriginal of vigor much broadly, had to beryllium done "today."

"So that we don't extremity up with the aforesaid geopolitics of vigor for renewables and for electrical vehicles arsenic we had successful the 20th period successful lipid and gas," helium added.

— CNBC's Elliot Smith contributed to this report.