The EU decision hurt Russia

The European Statistical Office (Eurostat) has published data on imports of crude oil and petroleum derivatives of member countries from Russia in the month of March.

Consequently, the EU’s total import of crude oil and petroleum products from Russia in March was 1.4 million tonnes.

DECREASED 90 PERCENT

This import was at the level of 15.2 million tons per month in the period 2019-2022. Thus, the EU’s total purchases of crude oil and petroleum products from Russia decreased by 90 percent in March.

The EU imported 12.4 million tonnes of crude from Russia in January 2022, the pre-war period.

EU crude imports fell by 70 percent to 3.7 million tonnes in December 2022, when the implementation of the sanctions embargo came into effect. Crude oil imports fell 91 percent to 1.17 million tons in March this year compared to the month before the war.

EU imports of petroleum products, which were 3.3 million tons in January 2022, decreased by 80 percent to 0.7 million tons in February 2023, following a second embargo decision. Imports of petroleum products fell 92 percent in March this year compared to the month before the war, reaching 0.3 million tons.

NOT COMPLETELY STOPPED

EU oil purchases from Russia have not stopped entirely due to sanctions exceptions that allow limited imports under certain conditions.

Before the war, EU countries got about 25 percent of Russia’s oil and 40 percent of its natural gas.

SANCTIONS ON RUSSIAN OIL

On December 5, 2022, the ban on importing seaborne oil from Russia and the price cap of $60 per barrel came into force.

In this context, if Russian oil is sold to third countries at a price higher than the determined price, companies from the G7 countries and the EU cannot offer various services such as transportation, insurance and brokerage to this oil. To provide these services, Russian oil must trade below the maximum price.

The EU ban on imports of various products derived from refined oil, such as diesel and liquid fuel (fuel-oil) transported from Russia by sea, and the application of maximum prices for these products began on February 5. In addition, the EU and the G7 countries had also limited exports of Russian refinery oil products to third countries.

Within this framework, Western countries began to apply two different price ceilings to Russia, namely high-value and low-value refinery products. A maximum price of $100 a barrel was set for Russian diesel and kerosene, and $45 a barrel for cheaper liquid fuels and light-colored petroleum products. (AA)