In Kharkiv, Ukraine, a long queue for refueling. Photo EFE
The executive commission of the European Union suggested phase out Russia’s oil imports within six months. Part of Europe’s fight is to stop paying Russia $ 850 million per day for its energy and hit the Kremlin’s finances because of its invasion of Ukraine.
But reversing Russia’s decades of reliance on oil and natural gas is not a simple matter for the 27-nation bloc. On the one hand, Hungary said it would not join the boycott, while Slovakia and the Czech Republic they are looking for a transition period of a few years. None of these countries have access to the sea and all three are major consumers of Russia’s oil.
Here is a snapshot of what the oil sanctions mean for the citizens of Europe and the rest of the world:
How much does Europe pay Russia?
Oil and gas supplies continued to flow even as governments condemned the war. The European Union pays Russia every day 450 million dollars for oil and another 400 million per day for natural gasaccording to calculations by analysts at the Brussels -based Bruegel research center.
That means energy revenues are boosting the Kremlin’s budget, increasing foreign exchange reserves which could help Moscow promote the ruble and partially recover Western sanctions that have frozen most of Russia’s foreign currency reserves.
Naphtha supply in Kharkov, Ukraine. Photo EFE
How much of Russia’s oil goes to Europe?
Europe is Russia’s largest buyer of crude oil, and in 2020 received 138 million tons of the 260 million tons exported by Russia, or 53%, according to the BP World Energy Statistical Review. Europe, which imports almost all of its crude, meets a quarter of its Russian oil needs.
The oil is refined to make fuel for heating and vehicles, as well as as an industrial raw material.
Why is oil the focus and not gas?
It is more difficult to find alternative sources of natural gas because it comes mainly through gas pipelines. It will be easier to find other sources of oil, which are usually tanker shipped and traded around the world. So a natural gas boycott is out of the question right now.
Major gas consumers, such as Germany, say that an immediate termination could result in jobsand warned industry associations that there could be closures of businesses focused on glass and metal.
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