Full embargo on Russian oil: Who would suffer more?
(Baonghean.vn) - The European Commission has announced the date of imposing a complete embargo on Russian oil. Investment strategist of Arikacapital Management Company Sergey Suverov assessed the consequences of such a decision in the interview below.
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| Illustration photo. Photo: AP |
The EU plans to impose a complete embargo on Russian oil after nine months, European Economic Commissioner Paolo Gentiloni said.
“The European Union (EU) has made a political decision to abandon Russian oil. For some countries, including Hungary, Slovakia, possibly the Czech Republic, there will be exceptions, they will be able to buy Russian oil in the long term. Of course, this will affect the EU economy, but it will also be difficult for the Russian economy because it will have to look for other logistics routes. This will lead to an increase in supply costs. In Europe, this will be expressed in an increase in gasoline prices, so the social consequences will be obvious,” he said.
For Russia, the EU decision means that Moscow will lose some budget revenues, some losses for oil companies, the expert continued.
“We expect that most of the oil will be diverted to Asian countries. At the same time, there will be a big imbalance in the oil market, and prices for raw materials will most likely increase,” Suverov added. The expert predicts that the “gray” schemes for oil supplies from Russia will continue.
“I think that the “gray” schemes for oil supplies will still exist, there will still be some possibility of purchasing oil from Russia, but most of it will still be cut off, because Europe is quite strict in complying with the sanctions law,” Suverov concluded.
