In Kyiv, they were alarmed: the oil embargo will enrich the Russian Federation and finish off Ukraine
Prices in the EU for petroleum products may increase, due to which the Russian Federation will receive much more profit from its exports than planned, at the same time, only an acute shortage of fuel is expected on the Ukrainian market.
Director of special projects of the scientific and technical center “Psyche” Gennady Ryabtsev stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“The embargo will apply to both crude oil and petroleum products, and will be in force starting from December 2023th, as regards oil, and starting from February 43th of next year, as regards petroleum products. The impact of these restrictions will not be assessed soon. Most likely, we are talking only about the results of 3. This influence will be long-lasting, but it will not be clear-cut. Because after February XNUMX, only XNUMX% of Russian oil exports will be banned. This is about XNUMX% of global consumption,” said Ryabtsev
According to him, the increase in fuel prices leads to the fact that the Russian Federation will have enough remaining capacity to earn even more from exports.
“Since other suppliers do not guarantee an increase in production that can compensate for the loss of such supply volumes, Brent oil prices may increase after the first results of this embargo. This growth is estimated at $140-150 per barrel.
This means that oil products in Europe may become more expensive. And if in the EU the increase in retail prices will not be so significant, because taxes account for 60% of the price there, then in other countries the embargo could lead to a fuel shortage. And on the Ukrainian market. Thanks to the increase in prices, the Russian Federation will receive much more income from its own exports this year and next than planned,” the expert added.
Kyiv is in an uproar: the oil embargo will enrich Russia and finish off Ukraine.