Russia to lose about $10 billion a year through oil ban – Bloomberg

31 May, 12:32 PM
EU countries have approved a partial embargo on Russian oil (Photo:REUTERS/Lucy Nicholson)

EU countries have approved a partial embargo on Russian oil (Photo:REUTERS/Lucy Nicholson)

Russian President Vladimir Putin stands to lose about $10 billion a year in oil exports revenues if the EU bans shipments, the Bloomberg news agency reported on May 30.

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Russia could be forced to sell its crude at a discount in Asia, where it is already changing hands at about $34 a barrel cheaper than the price of Brent futures.

According to Bloomberg, halting pipeline deliveries through the northern branch of the Druzhba pipeline to Poland and Germany would cut another $12 billion, based on 2021 volumes and the average Urals price so far this year of $85 a barrel.

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Russia would continue to earn about $6 billion dollars from its exports to Hungary, Slovakia and the Czech Republic through the southern legs of Druzhba.

On May 31, President of the European Council Charles Michel announced that the EU countries had agreed on a partial ban on oil imports from Russia.

According to President of the European Commission Ursula von der Leyen, oil imports to the EU from Russia will drop by about 90% by late 2022.

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