EU cashing in on cheap Russian oil – The Economist

EU cashing in on cheap Russian oil – The Economist

The supply of Russian oil to the European Union rose by 14% between January and April, from 750,000 to 857,000 barrels per day, The Economist reported on Wednesday, citing data by Argus Media. This comes as Brussels has been calling to completely stop energy imports from the country.

According to the report, the latest EU embargo on Russian oil applies only to seaborne crude and petroleum products, for now covering just 75% of imports from Moscow. Oil supplied by pipeline to a handful of countries in central and eastern Europe is temporarily exempt, it said. “Refiners in these countries are snapping up cheap Russian crude that most Western buyers are shunning.”

Germany is the only recipient country to have reduced imports via the Russian Druzhba pipeline since the outbreak of war in Ukraine, data showed. Druzhba, which is one of the longest and biggest oil pipeline networks in the world, carries the energy source some 4,000 kilometers from the eastern part of European Russia to refineries in the Czech Republic, Germany, Hungary, Poland and Slovakia. In January Berlin received half of the Druzhba oil and, by April, just a third.

The Czech Republic and Slovakia say they back an eventual ban on imports through Druzhba, but want a two- to three-year adjustment period. Meanwhile, Hungary’s prime minister, Viktor Orban, has been opposing a full ban on Russian oil imports, saying this would drop an “atomic bomb” on his country’s economy.

According to the Economist report, there’s “little financial incentive for refiners to ditch Russian supply,” while Urals crude is trading considerably below the international benchmark Brent. Refiners importing through the pipeline bought it at a discount of up to $40 per barrel compared with North Sea oil last month, Argus Media data showed.

“EU leaders insist that the Druzhba exemption will be revisited. In the meantime, the pipeline looks set to test European friendships,” the report said.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

A number of countries have dramatically increased their average monthly volumes of imports from Russia this year, according to trade data compiled by the Observatory of Economic Complexity, as cited
подробнее...

Russia’s foreign currency reserves increased by 1.2% during October to over $547 billion as of November 1. Moscow has been ramping up its reserves as a shield against Western sanctions.The increase
подробнее...

The US dollar, which is enjoying its peak years at the moment, could lose its status as the world's main reserve currency, former Lehman Brothers executive Lawrence McDonald has told Sputnik news
подробнее...

Washington will allow some transactions “related to energy” with Russian entities to continue until May 15 next year, according to an updated general license published on the US Treasury department
подробнее...

Food inflation in the UK soared to a record 11.6% in October, as even basics such as tea, milk, and sugar became much pricier, according to new figures released by the British Retail
подробнее...

A diplomatic dispute is brewing between India and Germany after Berlin took over a former Gazprom subsidiary and halted LNG shipments to New Delhi.The Russian gas giant’s former local subsidiary
подробнее...

Washington has given its blessing for India to keep buying as much Russian oil as it wishes, even at prices exceeding those set by the G7-imposed cap mechanism – but only if it refrains from using
подробнее...

Cosmetics and perfume brands Lancome, Redken, Yves Saint Laurent, Giorgio Armani, and Kerastase will return to the Russian market and therefore will be excluded from the list of so-called parallel
подробнее...

US officials are discussing with European allies the possibility of tightening export restrictions in trade with China, according to Bloomberg, citing people familiar with the matter.The White House
подробнее...

The State Bank of India (SBI), the country’s biggest lender, has seen a surge in quarterly net profit, the bank said in a press release on Saturday.According to the statement, net profit soared by
подробнее...

Budapest has imposed price caps on eggs and potatoes, Reuters reported on Wednesday, citing the prime minister’s chief of staff, Gergely Gulyas.The cap was announced after data showed food prices
подробнее...

Twitter is facing a class-action lawsuit from employees over mass layoffs ordered by the company’s new billionaire owner, Elon Musk.The legal action was brought on behalf of five employees on Thursday
подробнее...

The US is infringing free trade rules by imposing new export controls on Beijing, China’s Foreign Minister Wang Yi said on Monday during a phone conversation with his US counterpart Antony
подробнее...

The British government has “war gamed” emergency plans to cope with energy blackouts lasting up to seven days in the event of a national power outage, The Guardian reported on Tuesday. The
подробнее...

Portugal might be ending its “golden visa” scheme, which provides residence permits in exchange for investments, Portuguese Prime Minister Antonio Costa has said. The scheme, which has been running
подробнее...

Japanese energy company SODECO has decided to retain its 30% stake in the new entity that will manage the Sakhalin-1 oil and gas project in Russia’s Far East, Japan’s Economy and Industry Minister
подробнее...

The lowest income households in the Eurozone are the most exposed to record inflation, as they have smaller financial cushions to cope with the cost of living crisis, according to European Central
подробнее...

Inflation in Germany is expected to peak at 10.4% in October, according to preliminary figures released by the country’s national statistics authority.October looks to be the second consecutive month
подробнее...