Oil embargon of Western countries against Russia came into force: what changes are waiting for the market

The companies of these countries will now not be able to provide brokerage, insurance and other services for oil transportation of oil from the Russian Federation to third countries, if it is not sold at a price lower than the ceiling. If individuals or companies violate this rule, they are at risk of sanctions. Bulgaria will continue to receive oil and petroleum products with the Russian Federation by the end of 2024, and Croatia-by the end of 2023 to buy gas oil (oil processing product).

Price limits for Russian oil will be viewed every two months for an adequate response to a market situation. The new boundaries will be calculated from the rate of 5% below the average market price of Russian oil and petroleum products based on the data of the international energy agency, writes Bloomberg.

Tars, with reference to the data of the ARGUS agency, announced the refusal of most European countries from the oil supply of oil from the Russian Federation before the introduction of the embargo. The volume of maritime imports in the EU in October this year decreased by half - up to 770 thousand barrels compared to 1. 6 million barrels in January last year. Argus Vice president of the CIS consulting Sergei Agibalov emphasizes the success of Russian companies in reorientation of flows to Asia.

Prior to the start of a full -scale war in Ukraine, about 85% of oil supply to Europe was in Russia. Moscow is currently trying to refocus exports to other markets, including China and India, analysts say. According to Bloomberg, Russia is already selling oil at a discount. Urals oil fell to $ 45. 31 per barrel last week. EU countries are planning to ban the purchase of petroleum products in Russia since February 5 next year.

Recall that the transportation of Russian oil from the Baltic Sea to India took off from $ 11. 5 million to $ 15 million for the supply party after December 5. Tanker owners raise price rates. In November, Bulgaria agreed with the Russian oil giant Lukoil to buy oil products bypassing the European embargo. The country's authorities expect that such an agreement will bring 350 million euros to the budget.