EU talks about the real consequences of the Russian oil embargo
(Baonghean.vn) - EU countries are facing rising inflation and price shocks following the decision to phase out Russian oil imports, Guntram Wolf, Director of the Bruegel Research Center in Brussels, said in an interview with Spiegel magazine.
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The Gazela pipeline transports Russian gas to the EU. Photo: AFP |
In his view, for Europe this could be the “worst possible scenario”, as European companies and consumers would soon start to suffer from high prices for resources, which are likely to rise further.
“Governments may try to cushion the price shock by offering discounts on petrol stations, tax cuts and subsidies, as they have done in recent months. This could increase public debt,” Mr Volf said.
The economist believes that the embargo will only reduce Russia's oil revenues in the long run. For his part, Steffen Bukold, head of the Energy Comment analysis center, predicts that Moscow will find new buyers, mainly in Asia.
For Ursula von der Leyen, President of the European Commission, it was a "major step forward"; for German Economy Minister Robert Habeck, it was a "silent horror", the publication wrote.
On June 3, the European Council finally adopted and published in its official journal the sixth package of sanctions against Russia due to its military campaign in Ukraine. An exception was made for pipeline oil: for now, Europe will continue to receive supplies via the Druzhba pipeline. By the end of this year, the EU is expected to abandon almost 90% of its Russian oil imports.
After Russia launched a special military operation to demilitarize and de-fascize Ukraine, the West increased sanctions pressure against Moscow. Many countries announced freezing Russian assets and called for abandoning Russian energy. All these decisions have become problems for the US and Europe, causing fuel and food prices to increase sharply./.
