Despite the sanctions, Russia is Europe’s main supplier of petroleum products, so whether the European Union (EU) is ready to impose restrictions on the supply of Russian petroleum products remains a big question mark. About this RIA Novosti declaration Alexey Belogoriev, Deputy Director General for Energy, Institute of Energy and Finance (IEF).
“This is an open question because Russia remains Europe’s largest supplier. “We supply about 600,000 barrels a day of diesel fuel and all our other major suppliers – about 200,000 barrels a day,” he said.
According to him, the USA will not increase the supply of petroleum products to Europe. The opportunities for India and Saudi Arabia are probably not that great. There are also some difficulties with other suppliers.
He added that it is still early to evaluate the results of the ceiling price for petroleum products as of February 5th. It is also unknown what this ceiling will be. And for the G7 countries, maintaining the diesel fuel supply is not so important because it is a narrower market.
December 30 US Department of the Treasury published Preliminary instruction on the application of the mechanism of price restrictions on petroleum products exported from Russia. It was noted that for the US Treasury, deep processing of petroleum products outside of Russia is a condition of exemption from price restrictions.