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The EU ban on Russian oil is predicted to additional inflate oil costs, growing Moscow’s oil revenues
The ban on imports of Russian crude proposed by the EU authorities will solely elevate Moscow’s oil revenues, in response to Norbert Rucker, head of economics and next-generation analysis at Swiss wealth supervisor Julius Baer.
The impression of the ban on Russia is “debatable,” the analyst mentioned in an interview with Swiss information outlet 20 Minuten, including that the EU may have higher alternate options to weaken Russia, resembling punitive tariffs.
Earlier this week, the European Union unveiled a plan to ban Russian oil imports for all of its 27 member states. The measure, which is ready to hit Russia’s nationwide funds, comes as a part of an unprecedented sanctions marketing campaign launched by the West towards Moscow over its army operation in Ukraine.
“The large query now could be whether or not the West is placing strain on China and India; then the embargo would have a a lot larger impact,” Rucker mentioned, including that such a step would make it troublesome for energy-rich Russia to seek out consumers for its crude the world over.
In line with the professional, the ban is predicted to additional inflate world crude costs, which soared to $120 per barrel at one level in March, serving to sanctions-hit Russia to spice up its oil revenues.
“The embargo impacts Switzerland solely not directly,” Rucker mentioned, including that the nation will get most of its oil from European refineries which have already supported the change to alternate options.
“Nonetheless, additional progress in oil costs because of the embargo could be felt in Switzerland as nicely,” he added.
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