Without oil from Russia: who will lose and earn on the oil embargo in the EU

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, gave a comment to News.ru on the further development of the situation on the world oil market and in Russian oil production in the event of imposing an embargo on Russian oil supplies by the EU countries.

Everything can end up with the fact that sanctions will not be introduced centrally, but only by a number of countries that are more determined to limit the flow of money into the Russian economy at any cost. But then it will be Trishkin's caftan, since any countries that impose a ban on the export of Russian oil will be able to receive it from where the embargo does not apply. Such schemes are possible even for those countries within the European Union that will be given long-term exemptions. They will be able to become oil hubs for other EU countries and make money on it,” Alexey Gromov warns.

Now this potential is being realized in the Chinese way: state-owned companies fulfill the terms of contracts with Rosneft, receiving oil via the East Siberia-Pacific Ocean pipeline (capacity 80 million tons per year), and additional supplies go to private refineries, which can further increase purchases. Especially if China removes the covid restrictions that are now slowing down its economy, and thereby restore demand for energy, he predicts.