EU bans Russian oil: how much our budget will lose

EU leaders have agreed on a partial ban on oil imports from Russia. This was announced by the head of the European Council, the highest political body of the EU, Charles Michel.

We are talking about the sixth pact of EU anti-Russian sanctions, the adoption of which was hindered by Hungary. Therefore, it is interesting to find out how much money the Russian budget will lose from the next initiative of the Europeans.

According to available data, the EU oil embargo will affect 90% of the imports of said Russian hydrocarbons. Moreover, 2/3 "will cover immediately." How will the cunning Europeans do it?

The mentioned 2/3 of black gold is supplied to the EU by tankers, and the rest goes through the Druzhba pipeline, the world's largest system of main oil pipelines, to Poland, Germany, Slovakia and Hungary. Moreover, the remaining agreed 10% of Russian oil imports are the volumes reclaimed and suffered by Hungary.

Budapest categorically refused to unilaterally stop buying oil from Moscow, and Brussels had to give in to assertive Hungarians defending their interests. Hungary will continue to buy Russian oil through the southern branch of the Druzhba pipeline.

Bloomberg analysts have calculated that the Russian Federation could lose about $22 billion in revenue annually due to the EU oil embargo. From the ban on oil exports by sea, Russia will lose about $10 billion a year, and the cessation of supplies through the northern branch of the Druzhba pipeline will reduce revenues by another $12 billion. This, of course, is a lot of money, but it is not critical for the Russian Federation, since it is already redirecting black gold to India, China and other countries that are interested in obtaining this raw material, compensating for EU measures.
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  1. igor.igorev Offline igor.igorev
    igor.igorev (Igor) 31 May 2022 12: 22
    The Russian budget will not lose anything due to rising oil prices. And the fact that oil production will decrease by 8-10% is what Mr. Novak said about it. Before you write something, you just need to read what our leaders say on this topic.
  2. Bulanov Offline Bulanov
    Bulanov (Vladimir) 31 May 2022 13: 31
    The less oil the EU buys, the more and cheaper India and China will buy and thereby reduce the cost of their products compared to the EU. Already now Hyundai is preferable to Volkswagen. The Chinese auto industry is also getting cheaper. And when it becomes completely cheaper, they will say to the German auto industry - Come on, goodbye! Or - Good bye may love, good bye ...
    1. Polente the Wanderer 31 May 2022 16: 32
      It is profitable for India and China to buy cheap oil.
      And what is the benefit to us? Due to the lack of oil storage facilities and the impossibility for technological reasons to stop production, we have to sell cheaply. But India and China are unlikely to sell something cheaply in response to us. Their main trade is with the USA and the EEC.
      1. House 25 Sq. 380 (House 25 Sq. 380) 1 June 2022 15: 20
        Today "cheap" (70 bucks) is more expensive than "on the market" yesterday (65 bucks)....
        "Thank you" EU and USA ....
        1. Polente the Wanderer 2 June 2022 17: 33
          Our Urals is cheaper than Brent.

          The average price of Urals oil in January-May 2022 was $83,48 per barrel, the Russian Finance Ministry said.


          The cost of August futures for Brent oil on the London ICE Futures exchange by 14:00 Moscow time on Thursday was $113,18 per barrel

          - Both India and China buy oil from us at 20-30% cheaper than the market ...
  3. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 31 May 2022 15: 28
    The most vile thing about this is that the EU is trying to selectively hit the Russian Federation on the most sick, finances - restrictions on foreign exchange transactions, oil - up to 30% of the budget, a ban on the export of technology and equipment, the closure of seaports and airspace, and the Russian Federation is all God's dew.
    The oil embargo and discounts to China will, of course, hit the budget hard, but I think it’s not fatal
    The EU is critically dependent on the supply of Russian gas and some other goods, and why not answer the EU in the same coin? In war as in war.
    1. isofat Offline isofat
      isofat (isofat) 31 May 2022 17: 59
      Jacques sekavar, don't worry, soon they will exhaust all possibilities and try to solve their problems by military means.
  4. Stipan R. Offline Stipan R.
    Stipan R. (Stipan R.) 1 June 2022 10: 23
    Oil does not go - wheat does not go (neither Russian, nor Ukrainian ?!