August 15, 2022

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Putin's handling of the oil embargo.  Russia exports less, but earns about the same income

Putin’s handling of the oil embargo. Russia exports less, but earns about the same income

“The agreement covers more than two-thirds of oil imports from Russia, cutting off the huge source of financing its war machine,” he explained. Maximum pressure on Russia to end the warCharles Michel, president of the European Council, wrote on Twitter after member states drafted the sixth package of sanctions, which included a ban on Russian oil.

The ban applies to raw materials imported by sea. By the end of the year, the EU will forgo imports in this way by about 90 percent. Russian oil. Due to the degree of dependence of some countries on Russian oil and the difficulties they face in finding alternative supplies, there are transitional periods for Hungary and Slovakia. These countries will be able to import raw materials from Russia by the end of 2023 under existing contracts.

However, even from Michel’s comments, the EU appears to have hoped that even in a more benign form, cutting off Russian oil would allow a lot of sand to be poured into the patterns of the war machine operating over Ukraine. However, Bloomberg decided that it was completely different. Thanks to a smart move by the Kremlin.

Less merchandise sold, but more

Vladimir Putin’s regime raised oil export duties in response to the embargo imposed by the West. It increased by 23 percent between June and July. This means the Kremlin gets an extra $1.42 a barrel for every shipment shipped from the country.

Bloomberg summarized the first working week (4-8) of July, when the new rates were already in effect. The agency figured it out 555,000 barrels per day were sent from Russian ports compared to the previous week. In total, oil exports by sea decreased by 15 percent, but Russia’s revenue from this decreased by only 2 percent, or about $3 million.

Where does oil go from Russia?

According to data compiled by Bloomberg, Russian oil exports by sea are mainly dependent on China and India. Last month, deliveries to the People’s Republic of China were on average 628 M. barrels per day. India’s number reached 522 thousand. barrels per day.

ÔÇťAsian countries, which are dominated by China and India, still receive more than half of the total oil sent from Russia, but this share is declining. In the past four-week period, Flows to Asia were 52 percent. Total marine exports of Russia– writes Bloomberg.

What is the situation in other sales markets? Shipments to Northern Europe, mainly to warehouses in Holland, but also to Poland and Finland, settled at the level of about 450 thousand. barrels per day. Deliveries to Bulgaria and Romania averaged just under 300,000 barrels per day.

See also: New car taxes? The European Union corresponds to Poland

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