12/05/2022 00:23 (act. 12/05/2022 00:23)
EU oil sanctions against Vladimir Putin’s Russia in effect ©APA/SPUTNIK
As of Monday, crude oil from Russia can only be imported into the European Union in exceptional cases. The import restriction is based on a sanctions regulation passed by the 27 member states in June over Russia’s war of aggression against Ukraine. It entered into force shortly after the decision, but provided for transitional periods for the oil embargo.
Also coming into force this Monday is a regulation that aims to oblige Russia to sell oil to buyers in other countries for a maximum price of US$ 60 a barrel. The price of around €57 for 159 liters will be up to €9 below the latest market price for Russian Urals crude.
Both measures are intended to help limit Russian trade gains and thus also limit Russia’s war capabilities. According to an EU official, around three million barrels of crude oil per day are affected by the embargo. At a long-term average price of $70 (€67) a barrel, Russia would lose around $210m (€200m) in revenue per day. It is considered impossible for the oil volume to be fully sold to other customers.
Germany wants to stop buying Russian crude oil by the end of the year at the latest. Until then, it will make use of an exemption that applies to EU countries that, due to their geographic location, were particularly dependent on pipeline oil from Russia and are unable to replace imports so quickly. In Germany, the PCK refinery in Schwedt, Brandenburg, especially benefits from this. Until now, it has been supplied with Russian oil from the Druzhba pipeline, which now needs to be replaced.