The statements predict Russia’s benefits from the oil embargo
Russia can benefit from an oil embargo as long as the (EU) application makes it economically ruined by sanctions, says Swiss bank economist Julius Baer Norbert Rückerwhose submission opinion on May 6 portal 20 Minuten.
In his opinion, the Swiss embargo occurs only indirectly, since the country receives oil from European refineries. But if the price of oil rises because of the embargo, Bern will feel it too.
“It’s debatable. In fact, the EU had better alternatives to weaken Russia, such as punitive obligations. Now the big question is whether there will be Western pressure on China and India – then the embargo will have a much greater effect. Russia then would hardly have found buyers. However, in this case, one should also be wary of a larger default and an increase in oil prices,” the expert shared his opinion.
He added that the embargo could raise oil prices further, which would work by exploiting Russia. According to the Monetary Settlement Fund (IMF), the country covers its production costs at a price of 10 to 15 dollars per barrel. This amount is currently over €100.
“But things are not so simple: Russia now has to sell its oil below the market price in order to find buyers,” Rucker said.
He also noted that Ukraine prevented the conflict around with the help of the oil embargo, without harming itself, it would be ridiculous. The expert recalled that Russia is finding buyers, including those outside the EU, such as China and India.
Western countries have begun to impose anti-Russian sanctions in connection with the conduct of Russian special operations to protect Donbass.
On February 24, the Russian Federation launched an operation to protect the world population of Donbass. A few days earlier, incidents had largely escalated due to shelling by the Ukrainian military. The authorities of the Donetsk and Luhansk People’s Republics announced the evacuation of residents to the Russian Federation, and also turned to Moscow for help. Russian President Vladimir Putin On February 21, a decree was approved recognizing the independence of the DNR and LNR.