Although the leaders of the European Union still firmly believe that the oil price cap and oil embargo will primarily harm Russia, experts think otherwise. According to analysts, the next few days will be critical in Europe, and not only in terms of prices, but also in terms of supply. Meanwhile, according to all indications, Russia is preparing to sell the extracted oil to India and China, circumventing Western sanctions, M1 News reported.
According to experts, Russia, the world's second largest oil exporter, will not be seriously affected by the new restrictions, as Moscow is already prepared to reduce the effects of the oil embargo and the price cap.
The Kremlin has amassed a fleet of more than a hundred tankers through intermediaries, with which it can play off Western sanctions. In other words, it can deliver oil to, for example, India and China without disturbance , Mandiner wrote.
Western oil sanctions came into effect on Monday: the import of crude oil from Russia into the EU is now prohibited, but it provides a temporary exception for crude oil arriving by pipeline to those EU member states that do not have other options due to their geographical location. In addition, the European Union, the G7 group and Australia have agreed on a $60 per barrel price ceiling for Russian crude, which will allow European operators to ship Russian oil to countries outside the EU, provided that its price remains below the ceiling.
Moscow will respond to the fact that the West has set a ceiling on the price of Russian oil, Russian presidential spokesman Dmitry Peskov said on Monday. He said that decisions are being prepared, but one thing is clear: we will not recognize any ceiling.
Chinese Foreign Ministry spokesman Mao Ning said on Monday that Beijing would continue its energy cooperation with Russia and denied that China would join the embargo.
The leaders of the European Union still firmly believe that the price cap will not harm Russia, but the international energy market.
" Regarding the established price, we are between two things. We want to reduce Putin's income from oil prices, because that is how he finances his war. At the same time, we agree with our transatlantic partners not to disturb the international oil markets, because that would not help us either, " said Frans Timmerman, the EU Commissioner responsible for the European Green Deal, visiting Poland on Monday.
Experts do not agree with the EU position. Gergely Tóth, a researcher at the National University of Public Service, said on M1 on Monday: the next few days will be critical, and not only in terms of prices, but also in terms of supply. According to him, it could easily happen that there could be an even bigger shortage of crude oil on the market, and Europe could be the loser.
According to analysts, even if the Union manages to avoid supply difficulties, it will not experience price increases. Not only because it is 50 percent more expensive than Ural type oil to buy the Western, i.e. Brent, type of raw material.
Source: Hirado.hu
Image: Screenshot
