Post by account_disabled on Feb 28, 2024 0:03:52 GMT -5
Diplomatic delegations, financial entities, companies and associations are carrying out different initiatives to increase pressure on Russia in response to its invasion of Ukraine. We know that both international law and the United Nations Charter say that countries should not invade each other. War is illegal, but who has the ability to enforce those rules? And how to stop it?: stop buying Russian oil, the new international strategy.
Since the beginning of the war, international markets have had a strong impact on its operations and supply chain. Companies face difficulties in finding financial channels to trade with Russia. Furthermore, the destruction of transportation infrastructure accentuates this problem.
Maritime routes will also be affected, with grain shipments transiting through the ports of Ukraine and Russia.
In terms of energy, Ukraine and Russia are Changsha Mobile Number List essential suppliers of raw materials and energy to many crucial areas. Global reserves of this fuel are low due to the pandemic and energy prices are already rising sharply, impacting consumers and industry.
But given all this panorama, could the strategy of stopping buying Russian oil work? How could it affect international oil markets, which have already been damaged by the conflict.
Russia as a global oil supplier
Citing an article from The Conversation portal , Russia produces about 11 million barrels of crude oil per day . It uses about half of this production for its own domestic demand, which has presumably increased due to increased military fuel requirements, and exports between 5 and 6 million barrels per day. Today, Russia is the world's second-largest crude oil producer, behind the U.S. and ahead of Saudi Arabia, but that order sometimes changes.
About half of the oil exported by Russia, about 2.5 million barrels per day, is shipped to European countries, including Germany, Italy, the Netherlands, Poland, Finland, Lithuania, Greece, Romania and Bulgaria. Almost a third reaches Europe via the Druzhba pipeline – the world's longest oil pipeline – through Belarus. These 700,000 barrels per day in pipeline shipments would be an obvious target for some kind of sanctions, either prohibiting financial payments or refusing deliveries through bypass lines on the border with Belarus.
In 2019, the European Union stopped accepting deliveries for several months of the Druzhba line ; when the crude oil flowing through it became contaminated with organic chlorides that could have damaged oil refineries during processing. Russia's oil shipments fell noticeably as flows were redirected to avoid the Druzhba Line.
stop buying Russian oil
The remaining export shipments of Russian crude to Europe come mainly by ship from various ports.
Nations reduce Russian oil imports
Sanctions against Russia's oil industry would have a greater impact than limiting natural gas flows because Russia's oil revenues are higher and more critical to its state budget. Russia earned more than $110 billion in 2021 from oil exports , double its revenue from natural gas sales abroad.
Since oil is a relatively fungible global commodity, much of Russia's crude exports to Europe and other G-7 participating countries could end up being shipped elsewhere. That would free up other supplies from sources such as Norway and Saudi Arabia to be redirected back to Europe.
Since the beginning of the war, international markets have had a strong impact on its operations and supply chain. Companies face difficulties in finding financial channels to trade with Russia. Furthermore, the destruction of transportation infrastructure accentuates this problem.
Maritime routes will also be affected, with grain shipments transiting through the ports of Ukraine and Russia.
In terms of energy, Ukraine and Russia are Changsha Mobile Number List essential suppliers of raw materials and energy to many crucial areas. Global reserves of this fuel are low due to the pandemic and energy prices are already rising sharply, impacting consumers and industry.
But given all this panorama, could the strategy of stopping buying Russian oil work? How could it affect international oil markets, which have already been damaged by the conflict.
Russia as a global oil supplier
Citing an article from The Conversation portal , Russia produces about 11 million barrels of crude oil per day . It uses about half of this production for its own domestic demand, which has presumably increased due to increased military fuel requirements, and exports between 5 and 6 million barrels per day. Today, Russia is the world's second-largest crude oil producer, behind the U.S. and ahead of Saudi Arabia, but that order sometimes changes.
About half of the oil exported by Russia, about 2.5 million barrels per day, is shipped to European countries, including Germany, Italy, the Netherlands, Poland, Finland, Lithuania, Greece, Romania and Bulgaria. Almost a third reaches Europe via the Druzhba pipeline – the world's longest oil pipeline – through Belarus. These 700,000 barrels per day in pipeline shipments would be an obvious target for some kind of sanctions, either prohibiting financial payments or refusing deliveries through bypass lines on the border with Belarus.
In 2019, the European Union stopped accepting deliveries for several months of the Druzhba line ; when the crude oil flowing through it became contaminated with organic chlorides that could have damaged oil refineries during processing. Russia's oil shipments fell noticeably as flows were redirected to avoid the Druzhba Line.
stop buying Russian oil
The remaining export shipments of Russian crude to Europe come mainly by ship from various ports.
Nations reduce Russian oil imports
Sanctions against Russia's oil industry would have a greater impact than limiting natural gas flows because Russia's oil revenues are higher and more critical to its state budget. Russia earned more than $110 billion in 2021 from oil exports , double its revenue from natural gas sales abroad.
Since oil is a relatively fungible global commodity, much of Russia's crude exports to Europe and other G-7 participating countries could end up being shipped elsewhere. That would free up other supplies from sources such as Norway and Saudi Arabia to be redirected back to Europe.