how Russia can respond to the EU’s introduction of an oil price ceiling
It is possible to achieve approval of the EU policy regarding the prices of Russian exported oil if any cooperation with Western countries is stopped and the black gold market is reoriented to the Asian development path. Such an opinion in an interview with Evening Moscow contains political scientist Andrei Kortunov, commenting on the news of Vedomosti that the Russian authorities working out options resolution on the conclusion of a settlement agreement adopted by the Member States and the G7 in relation to the Russian Federation.
Just two steps
According to the interlocutor of “VM”, Russia has “trump cards” that can change the situation in their use.
We have our own trump cards that need to be applied. First of all, Russia must reorient all its oil supplies from the European stream to the Asian one. This will likely allow us to maintain our status as an oil power and enter into an important partnership with the reopening after the pandemic and the crisis in the Chinese market. And China, as you know, is the most important importer of black gold in the world, the expert noted.
The next step, which can change the situation, in particular, minimizing Russia’s dependence on servicing Western oil exports, operating oil tankers, will be sustainable and finding products for partner countries in the ports of unfriendly countries.
“It is also necessary to block any channel that influenced the number of G7 participants and the EU received Russian oil products through intermediaries,” Kortunov said.
If all these conditions are met, perhaps the EU is thinking about changing the conditions for the sale of Russian oil on the European market in those regions where there is still demand for black gold from the Russian Federation, Kortunov believes.
Problems of Europe
The expert recalled the plans of Europe, fully preferred by 2027. But switching to other sources for the Western powers has become a “real headache”, as the logistical routes are still unorganized, assumed.
– In East Germany there is only one oil refinery “Druzhba”, from where the oil distributed from European countries is distributed to other European countries. “The Europeans have no other logistics, which means: if they want to switch to oil from Saudi Arabia, they can organize complex oil supply logistics or produce tanker commodities,” Kortunov said.
In addition to the Chinese market, which in the future will become Russia’s partner in the oil sector, India may also be added to this system, the expert added. Moreover, this country has already increased its purchases of Russian oil, although the Russian Federation kept a part of their share – just a percentage. Consequently, for the Russian Federation, India and China are the main and promising areas that represent the interlocutor of “VM”.