Oh! This is the horrific impact if Putin takes revenge on Biden cs

Jakarta –

Russia banned oil export to the G7 countries including the European Union. The decision was a form of revenge by President Vladimir Putin for the policy of limiting the price of oil imports.

As the third largest oil producing country in the world, Russia has a good number of import customers, one of which is in Europe. The G7 countries themselves consist of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States (USA).

What impact will this ban have on the G7 countries, Australia and the European Union?

According to the executive director of the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad will have a greater impact on European countries, such as Germany, France, Italy and also the UK.

The price of oil in a number of countries will rise. Automatic fuel prices the oil (BBM) will increase significantly, public transport costs will increase, and logistics costs will become more expensive.

“Impact on transportation, yes, fuel will go up, transportation costs will go up, logistics costs will go up, because in trade ships that use diesel have to use oil. The cost of public transport will go up, because fuel is critical “he told detikcom, on Wednesday (12/28/2022).

Meanwhile, G7 countries like the United States and Canada are said to have little effect. This is because the US and Canada are able to produce their own crude oil. Each product for domestic needs reached 18.8 million barrels and 5.6 million barrels.

“US produced about 18.8 million barrels, Canada 5.6 million barrels, China 4.9 million barrels, Iraq 4.1 million barrels, United Arab Emirates 3.8 million barrels, Brazil 3.7 million barrels, Iran 3.4 million barrels and Kuwait 2.7 million barrels,” he explained. .

So, looking at these data, it can be concluded that Putin’s revenge policy will not have much effect on the United States and Canada as well.

On the other hand, countries in Europe will try to buy from other countries, even if it is more expensive.

Contacted separately, the director of the Center for Economic and Legal Studies (CELIOS), Bhima Yudhistira, said that Russia’s decision to halt oil exports would cause Europe to lose 14.4% of its oil, the impact of which could create Europe’s energy crisis in winter.

“The rise in fuel prices will hit various sectors in Europe, possibly worse than the Great Depression of 1930,” he explained. The impact on European countries will be higher inflation and an impact on the worsening cost-of-living crisis,” she said.

Bhima shows data on EU oil imports from Russia. Eurostat data found that as of the third quarter of 2022, the European Union imported the most oil from Russia at 14.4%, followed by the United States with 11.9%, Norway with 10 .4%, Saudi Arabia with 9.1%, Iraq with 7.6% and Kazakhstan with 6.8%. The share of oil imports from Russia has shrunk significantly since 2021 from 24.8% to 14.4%.

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(ada/zlf)