The European Commission has proposed a legal option to circumvent oil sanctions against Russia.
TWIST-TURN, I WANT TO TRADE
… Well, we don’t refuse to buy your petroleum products. But let’s all pretend together that these are not your petroleum products. Now write what you need to do for this…
With approximately such an appeal to Russia (only in a slightly more official and impersonal form), the European Commission suddenly came out. Offering a legal option to circumvent oil sanctions.
Let’s remember that this winter he introduced two embargoes: on December 5, on the supply of our oil, on February 5, on the importation of our petroleum products (fuel, kerosene, diesel fuel, etc.). At the same time, the EU countries, with the G7 and Australia joining them, set a ceiling on oil prices: no more than $60 a barrel. For oil derivatives, the maximum price is set at $45 and $100 (depending on the type of product). If Russian oil or petroleum products sell above the established prices, companies from these countries are prohibited from transporting and insuring them.
It would be naive to deny that it will be more difficult for us without the Western market: Europe has always bought the lion’s share of Russian “black gold” and oil products. But since they themselves do not want… In general, without thinking twice, Russian oil companies found independent carriers and set their course for Asian markets.
It was then that European politicians thought. And they decided to soften their embargo. The European Commission issued a special explanation in which it identified two exceptions to the sanctions rules:
1. The embargo and price cap do not apply to petroleum products produced from Russian oil outside of Russia.
2. The “maximum price” rule is canceled if Russian oil products are mixed with oil products from another country. In this case, European carriers will be able to transport and insure them regardless of the sale price.
WHERE DOES SUCH “GENEROSITY” COME FROM?
– The Europeans were afraid that if Russia had problems with sales, it would reduce exports and production. And then the prices will instantly rise. And the EU countries are importers, and in this case they will suffer due to the increase in inflation. That is why they offered us a loophole,” explains Igor Yushkov, a lead analyst at the National Fund for Energy Security.
According to the expert, the objective of Europe and the United States is for us to continue fully extracting our “black gold”, but not for us to profit from it.
– In fact, we have opened another sales market (European, – Ed.). To a greater extent, this loophole is designed for the EU, but it is also beneficial for us. It will not allow us to lower our budget, – says Yushkov.
The Europeans clarify that the EU-imposed embargo and price ceiling do not apply to oil products produced from Russian oil outside of Russia.
Photo: GLOBAL LOOK PRESS
Let’s talk about the budget. The day before, the Ministry of Finance said that in January our budget turned out to be very tight: expenses exceeded income by as much as 1.776 trillion rubles. The reason is the decline in oil and gas revenues.
– There is no need to be afraid, – reassures Igor Yushkov. – Now there is a wave of restructuring of the markets. We are adapting to the maximum price of oil and its derivatives, and we are moving completely to the Asian markets. And under such conditions we are forced to give a discount. But the second half of the year will be more successful for Russia. At that time, we will rebuild, start working normally. The world market will demand more oil and the price will rise.