European officials have so far announced that the union will ban Russian tankers from importing crude oil and refined fuels, such as diesel, which account for two-thirds of the continent’s purchases from Russia. The ban will be introduced in stages lasting more than six months for crude oil and eight months for diesel and other refined fuels.
In addition, Germany and Poland pledged to cut off oil imports from Russia via the pipeline, which means Europeans could cut Russian imports by 3.3 million barrels a day by the end of the year.
The union said European companies would no longer be allowed to provide tankers carrying Russian oil anywhere. This ban will also be phased in over a number of months. With many of the world’s largest insurers located in Europe, the move could significantly increase Russia’s energy supply costs, although some of the work can now be done by insurers in China, India and Russia themselves.
Before the invasion of Ukraine, nearly half of Russia’s oil exports were shipped to Europe, accounting for $ 10 billion a month. Russian oil sales to EU member states have declined slightly in recent months, and trade with the United States and the United Kingdom has been canceled.
Some energy analysts said new European efforts could help separate Europe from Russian energy and reduce Putin’s political influence over the West.
“There are many geopolitical implications,” said Megan L. O’Salivan, director of the Energy Geopolitics Project at Harvard Kennedy School. “Ebargo will drag the US deeper into the global energy economy and strengthen energy ties between Russia and China.”
Another hope for Western leaders is that their steps will weaken Russia’s position in the global energy sector. The idea is that despite its efforts to find new buyers in China, India and elsewhere, Russia will generally export less oil. As a result, Russian producers will have to close wells that they will not be able to easily reopen due to difficulties in exploring and extracting oil in the inhospitable Arctic fields.
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