It may heap new costs on diesel-reliant industries among other things. Read more at straitstimes.com.
NEW YORK The campaign by western nations to defund the Kremlin and force President Vladimir Putin to abandon his war in Ukraine is reaching a delicate phase. From Feb 5, the European Union will join Britain and the US in banning seaborne imports of Russian diesel and other oil products.is designed to blow a sizable hole in Moscow’s energy revenues.
It also ships jet fuel, vacuum gasoil and other petroleum products. In all, Russia accounted for 9.3 per cent of global oil product cargoes by volume in 2022, about 0.5 percentage points more than its share of the crude market, so these latest EU sanctions are just as significant.The same way as the cap on crude imposed by countries including the Group of Seven nations and the EU.
It depends partly on whether firms in China use increased export quotas to make more oil products available to the global market. However, if Russia can’t find enough buyers and is ultimately forced to cut production, that could drain global availability. French oil sector strikes further complicate the picture, given the potential for disruption at refineries that could reduce the EU’s own output.EU leaders hope the new penalties will make a dent in Russia’s finances without causing an energy supply shock that disrupts key industries and makes it harder for governments to bring inflation under control.
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