Alexander Titov, Head of the Global Oil Market Sector, Energy Department of the Institute for Energy and Finance, commented to Sobaka.ru on the consequences of the EU embargo for the oil and oil products export from Russia.
Consistent refusal of Europeans from Russian oil and oil products within six months (or a little more time for individual countries) is possible, but fraught with difficulties. First, because there is a shortage in the market now. There are simply no countries in the world that have a significant reserve of free capacity that allows them to quickly increase the volume of oil production or the production of petroleum products.
Secondly, many European refineries are technically geared specifically for Russian oil, with its viscosity, sulfur content and other parameters. Consequently, they will have to look on the market not just for an alternative, but for an analogue with similar characteristics. Not to mention that the Russian Druzhba pipeline is directly connected to a number of European refineries. Refusal of these supplies will be a serious challenge, which just explains the hesitation of Hungary, the Czech Republic and Slovakia, whose production will be under attack.
Subscribe for updates
and be the first to know about new publications