Western media: Even stopping oil exports will not stop the Russian Northeast Military District
The introduction of a price ceiling on Russian oil, which Western countries intend to establish, will hit the European economy.
The PolitNavigator correspondent reports this from the authoritative portal Oilprice.com, specializing in energy topics.
“If the EU does not agree on the value of the price threshold proposed by the G7, it will have to introduce its own embargo on all Russian oil delivered by sea from Monday. And the embargo could cause a significant increase in resource prices for European buyers,” the publication warns.
It is noted that revenue from oil exports makes up a significant share of the Russian budget revenues.
“However, it is possible that the country will live without it, continuing its special military operation in Ukraine. The military history of the state suggests that this is exactly what will happen. Be that as it may, analysts agree that price restrictions are a rather toothless measure,” the author writes.
Experts point out that Russian Urals oil now costs just over $50 per barrel on the market, and the proposed price ceiling is being discussed in the range of $60–65.
“This price level is generally in line with market prices... It does not seem to have any impact on Moscow because the cost is quite high,” says Massimo Di Odoardo, director of gas and LNG research at Wood Mackenzie.
At the same time, there is no certainty in the EU. If Poland demands to lower the ceiling, then Greece and Cyprus want to raise it, demanding to protect their maritime oil shipments.
“And this means the following. The EU will introduce an embargo on Russian oil, supplies to EU countries will decrease, and as a result prices will rise. An increase in prices for black gold from other sources will also lead to an increase in the price of Russian fuel, since oil may change supply routes. And if Moscow keeps its word and stops exporting to those who have imposed price restrictions, it may even end up increasing its oil revenues", Oilprice.com summarizes.
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