Experts: EU Alert to the Risk of Reduced Russian Oil Supply to the Global Market

Experts from the Research and Forecasting Department of the Bank of Russia said that the European Union is indirectly aware of the risks of changes in prices and fuel supplies on the world market due to a decrease in the supply of Russian oil.

Experts noted that earlier, immediately after the entry into force of the ban on the supply of petroleum products, the European Union specified its conditions.

He explained that the supply ban and price ceiling would not apply to petroleum products produced from Russian oil outside of Russia, as well as to a mixture of Russian petroleum products.

The experts emphasized that “this indirectly indicates the recognition of the fact that, given the current balance of supply and demand in the world market, a significant reduction in the supply of Russian oil and petroleum products can lead to significant disproportions in prices and fuel supplies.”

The experts added that “the Russian authorities provided an indicative discount from the price of Urals oil to the price of Brent oil for tax purposes and fixed it at $34 per barrel in April with a monthly decrease ranging from $3 to $25 per barrel for July.

Central Bank experts note that “ceteris paribus, this will have a positive impact on budget revenues: oil and gas revenues will increase with a slight decrease in income tax revenues. This reduction will continue.”

Source: TASS

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