Expert: US unable to compensate Europe for Russian oil products

Aleksey Belogoryev, deputy executive director of the Russian Institute of Energy and Finance, ruled out the ability of the US to meet the EU’s oil needs if Russia cuts it off from Europe.

Belogoriev told Sputnik in response to a question about Europe’s readiness to impose an embargo on oil products from Russia: “This is an open question, because Russia is still the largest supplier to Europe. all other major suppliers are Saudi Arabia.” Saudi Arabia, the US and India export about 200,000 units.

He added: “I rule out that the US is ready to increase (the supply of petroleum products to the EU), can India and Saudi Arabia do this? The most important question, what about other suppliers? this case.”

Belogoryev, in general, Russia still supplies the EU and the UK with about a million barrels per day of oil products, and this is mainly diesel fuel, fuel oil and naphtha, according to experts, so the embargo will create a problem for both sides. Since China and India export oil products, these volumes will have to be redirected not only to Asia, but also to smaller markets in Africa and Latin America.

Belogoriev pointed out that it is still difficult to assess the consequences of setting a price ceiling for Russian oil products, which some European countries and a number of other countries plan to introduce from February 5.

Belogoriev noted that: “We do not yet know what this ceiling will be. For the G7 countries, maintaining the export of Russian diesel fuel or fuel oil is less important, because this market is narrower and works differently.”

Western oil sanctions came into effect on Dec. 5, and the European Union imposed an embargo on Russian oil transported by sea, while the G7 countries, Australia and the European Union imposed a ceiling on the price of oil for sea transportation at $60 per barrel. , and it is expected that it will be implemented. Similar measures will be taken for oil products from February 5, although the price ceiling is not known.

On December 27, Russian President Vladimir Putin signed a decree banning the supply of oil and petroleum products to countries that have set a price ceiling.

The ban on the export of oil and oil products from Russia will come into force on February 1, 2023, and the decision on retaliatory measures to set the oil price ceiling will be valid until July 1, 2023.

These measures are being taken in response to “unfriendly and contrary to international law actions taken by the United States of America, foreign states and related international organizations” in order to protect the national interests of the Russian Federation, the decree says.

The ban excludes certain individual cases based on a special decision by Russian President Vladimir Putin.

Source: Sputnik

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