Against the background of problems with logistics, the markets of China and India for Russian oil products will cease to exist.
Because of the sanctions, many Russian companies are already selling oil at a loss. In the future, the Russian economy will collapse due to the loss of income from the once most profitable energy industry.
This was stated by the leading economic analyst and specialist in the oil and gas market Mykhailo Krutikhin in the program “Argument“.
He noted that Moscow is currently able to sell some of its crude oil using huge discounts at $48-49 per barrel or through smuggling. However, Russia will not be able to move on this path for a long time, as its economy will suffer enormous losses.
“Sometimes in some industries (the price – editor. UNIAN) is lower than its cost. That is, how much it costs to extract oil, deliver it to the port, pay the tax for the extraction of minerals, export duty – as a result, the companies actually have nothing left from the sale of oil.” , – said Krutikhin.
He also stated that the situation will only worsen against the background of the EU’s decision to close the export of Russian oil products. The Chinese and Indian markets for Russian products will cease to exist. It will also provoke stagnation in the development of the oil industry in Russia itself.
“It will be necessary to curtail production. And if wells are closed in Russia, their conservation will lead to additional costs, and significant ones,” the analyst believes.
It is “more expensive” to restore them later, the expert noted. He said that as a result, Russian oil production could decrease by up to 30%.
“Currently, it is estimated that it may decrease by 15%. Although, I think it will be closer to 30%. We need to focus on this figure now,” he summarized.
Sanctions against the oil industry of the Russian Federation
February 4, Council of the EU approved the price ceiling for oil products, which Russia produces or exports. Then the EU determined two limit prices for oil from the Russian Federation. One of them concerns oil products, which are more expensive than crude oil (diesel fuel) in terms of cost, and the other – cheaper products, such as fuel oil.
February 5 EU introduced a ban on Russian diesel fuel and other refined products from Russia for most of the countries of the Organization. An exception was made only for Hungary, the Czech Republic and Slovakia, which had no alternative.
According to the decision of the European Union, the price ceiling for Russian oil is 60 dollars per barrel. Today, Japan supported this decision and introduced its own oil embargolimiting its price to 100 and 45 dollars per barrel (depending on the type of oil products).