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EU Sanctions On Russian Oil Will Raise Prices Likely To Disrupt Supplies Germany | Russia And Ukraine War: EU sanctions on Russian oil will raise prices, likely to disrupt supplies

EU Sanctions On Russian Oil Will Raise Prices Likely To Disrupt Supplies Germany |  Russia And Ukraine War: EU sanctions on Russian oil will raise prices, likely to disrupt supplies
Written by Arindam
EU Sanctions On Russian Oil Will Raise Prices Likely To Disrupt Supplies Germany |  Russia And Ukraine War: EU sanctions on Russian oil will raise prices, likely to disrupt supplies

EU Sanctions On Russian Oil: German Economy Minister Robert Hebeck said on Wednesday that the EU’s gradual lifting of sanctions on Russian oil imports could “constrain” supplies and push up prices. However, he also supported the measure as a necessary step to impose sanctions on Moscow.

“I have said several times that we certainly cannot guarantee in this situation that there will be no disruption, mainly regional disruption,” Robert Hebeck said after the cabinet meeting. He insisted that Berlin supported the bloc’s measure as a response to the attack on Ukraine.

‘It’s a complicated situation’
Hebeck specifically cited the PCK refinery in the eastern city of Schwedt, which could feel the impact. It supplies about 90 percent of the oil consumed in Berlin and the surrounding area, including Berlin-Brandenburg International Airport. Russian oil giant Rosneft, controlled by the Kremlin, is a majority shareholder in the site – a complex situation that Beck said would have to be “politically resolved”.

Habeck noted that the gradual implementation of the embargo should help provide relief to oil markets. “It is possible that their price has already been fixed, but of course the prices can also increase significantly,” he said.

The European Union presented this plan against Russia
A European Union executive on Wednesday introduced a plan to gradually impose sanctions on Russian oil imports as part of new sanctions aimed at punishing Moscow for attacking Ukraine. If approved, the oil embargo would be the EU’s toughest ever against Russia’s strategic energy sector, but it would still not touch its huge gas exports.

Germany has ruled out imposing immediate sanctions on all Russian energy, especially gas. But it aims to end Russian oil imports by the end of this year. According to data provided by the economy ministry on Sunday, Russian supplies now account for 12 percent of Germany’s oil imports, compared to 35 percent earlier.

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