A number of members of the Organization of the Petroleum Exporting Countries (OPEC) are considering excluding Russia from the oil deal due to sanctions.
This was reported by The Wall Street Journal with reference to OPEC members.
Sources say the sanctions and a partial ban on Russian oil imports threaten Russiaʼs ability to extract raw materials. According to their estimates, by the end of the year, oil production in Russia will be reduced by 8%, so OPEC may redistribute quotas. This will allow other producing countries to produce much more oil.
It is unknown at this time what Russia will do. Will it agree to withdraw from the oil deal?
According to Reuters, a partial oil embargo agreed by EU countries could reduce Russiaʼs oil revenues by at least $ 3.4 billion a month. At the same time, European spending on energy imports, according to the agency, will increase by $ 2 billion a month. This means that the embargo will hit Russia harder than Europe.
In the future, Russia will be able to sell only 1.75 million of the previously exported 3 million barrels per month, which will lead to a drop in revenue of $ 3.4 billion immediately after the entry of sanctions into force. At the time of the full embargo, this figure will increase to $ 4.5 billion a month.
- On May 31, European Council President Charles Michel announced that EU leaders had agreed on an oil embargo. The European Union will be able to ban the import of about 2/3 of Russian oil, which it purchased previously.
- Other important components of the package include the disconnection of Russiaʼs Sberbank from SWIFT, the ban on Russian Rossiya24, TV center International, RTR Planeta and sanctions against Russian citizens and companies involved in war crimes in Ukraine.