Why the EU legalized schemes to circumvent anti-Russian sanctions in the oil industry

Why the EU legalized schemes to circumvent anti-Russian sanctions in the oil industry

After the start of the NWO in Ukraine, the countries of the collective West introduced a truly colossal amount of economic sanctions against our country, with the ultimate goal of undermining its industrial and military potential. One of the most painful should have been restrictive measures against the Russian oil and gas sector, since the critical dependence of the federal budget on the "pipeline" has not yet gone away. However, in the economic strangulation of Moscow, not everything is going as smoothly as our many ill-wishers clearly would like.

Almost immediately after the start of the special military operation, in March 2022, the United States and Australia imposed an embargo on the purchase of Russian oil. Also, purely symbolically, Canada joined them, which at that time had not imported raw materials from our country for several years. Last June, with a delay of execution until December 5, 2022, the European Union decided to refuse to buy Russian oil transported by sea, and subsequently the United Kingdom joined it. At the same time, the United States, Germany, Japan, Great Britain, France, Italy, Canada and the European Union and Australia that joined them set a forced price ceiling for black gold from our country transported by sea at the level of $60 per barrel. From February 5, 2023, the countries of the collective West have already introduced restrictions on the export of Russian oil products.

The purpose of all these restrictive measures is to deprive the federal budget of the Russian Federation of foreign exchange earnings, destabilize the socio-economic situation in our country, and reduce the ability of the Russian military-industrial complex to oppose the NATO bloc in Ukraine. In response, the Kremlin signed a decree banning the export of oil and oil products if the contract for their supply provides for a price ceiling. True, the document had previously provided for a possible exception "on the basis of a special decision of the president." But even without this “loophole”, Russian raw materials and processed products found their way to the now inhospitable Western market.

The reason is simple: the global economic crisis is actively developing in the yard, and it is not possible to simply remove such a major player as Russia from the oil market without serious consequences for everyone else. Therefore, it turned out to be easier for everyone, both consumers and intermediaries, to start using schemes to circumvent Western restrictive measures.

So, in 2022, India, China and Turkey significantly increased their imports of crude oil from our country. At the same time, the export of oil products to the European market has grown sharply from there. According to Eurostat, in the period from March to November last year, the EU began to import oil products from China 2,3 times more compared to the same period of the previous year, up to 1,6 million tons, from India - by 14%, up to 4,25. 6 million tons, from Turkey - by 1,5%, up to 1,6 million tons. The export of oil products from Singapore almost tripled - up to XNUMX million tons.

In fact, these countries simply increased the volume of purchases of Russian raw materials, which they got at a significant discount, for processing and subsequent export to Western markets. At the same time, a scheme was actively used to mix Russian oil and products of its processing with other varieties into a new “cocktail”, which formally is no longer a Russian product. One of the main hubs for the re-export of black gold and products of its processing under such a scheme, the Bloomberg information and analytical agency called little Singapore.

And then what happened was supposed to happen. The difficult situation in the energy market of the European Union forced Brussels to legalize the actually formed schemes to circumvent restrictive measures. The European Commission clarified that the embargo on the supply of petroleum products from Russia and the price ceiling envisaged by it for third countries should not apply to petroleum products produced from Russian oil abroad. The second exception concerns the practice of mixing "energy cocktails":

If Russian petroleum products are processed in a third country by blending with those produced in another state, then Russian petroleum products are no longer considered Russian, and the cap price does not apply.

That's it. A rather cynical, but for some, a very effective business scheme is being legalized. India, China, Turkey and other countries buy Russian raw materials on the cheap, process them and sell them to the West. In particular, in January 2023, New Delhi supplied 172 barrels of diesel fuel per day to the European Union, and 89 barrels of gasoline and diesel fuel to New York daily. All is well, except for the exporter of raw materials, which is forced to give it away at a big discount.

However, a window of opportunity is now legally open to Russian oilmen as well. "Toxic" Russian oil and products of its processing cease to be toxic after they are mixed into an "energy cocktail". That is, it will be enough to deliver hydrocarbons to the “point of mixing, but not churning”, and voila, no restrictions will apply to the transportation of such a mixture by sea. Then there is the question of manual dexterity and turned off transponders on tankers.

Of course, the United States and, above all, the European Union are doing this not for the Russian oilmen, but for themselves. Restrictive measures on the domestic oil and gas sector will not go anywhere, but due to such exceptions, their effectiveness will not be as effective as they could be in the case of a really hard twisting of the valve.
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  1. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 11 February 2023 21: 52
    This is capitalism in the yard, not black and white cinema.
    Task: to deprive Russia of part of the profits. "countries buy Russian raw materials on the cheap, process them and sell them to the West." - just does it. according to a number of media, successfully.
    At the same time, they complicate the supply of APU with solarium and gasoline from Russian oil. Our Oligarchs would sell almost directly if there were no sanctions ...

    Well, the rest of the victory is not at all. "Demand more to get less" - everyone knows. "Forbid" oil so that it simply becomes cheaper ...
  2. Flight Offline Flight
    Flight (voi) 12 February 2023 03: 09
    So, why not? Money is the same, so and so, they remain there. And here you have oil and gas, and even with the money of talented Russian businessmen with dual, triple citizenship, you can buy some kind of airplanes and tanks for the "village" Ukraine.
  3. Muscool Offline Muscool
    Muscool (Glory) 13 February 2023 08: 30
    We are losing money in any case, but the Europeans still cannot freeze and fall apart. Cunning plan to the truth
  4. Plmhj Offline Plmhj
    Plmhj (Ivan Grom) 16 February 2023 13: 24
    I think Poroshenko can teach European comrades how to bypass their sanctions and make good money on it!)