Sky's Ian King writes that the planned action by Russia's biggest oil customer will inflict a big financial hit but the EU will not be immune from the pain as it scrambles to replace the supplies
This year, with crude prices trading higher, it was expected to reap as much as $180bn from crude sales.
So, by refusing to buy Russian crude and refined products, the EU is striking a heavy blow against Moscow. The bloc is estimated to have already paid Russia something like €22bn for crude and refined exports since the start of the war.Ukraine MP on EU's Russia oil ban The industry analysts S&P Global Platts estimate that Indian refiners have been buying Russian crude recently at a discount of around $40 per barrel to the recent industry average of around $104 per barrel. So Russia will not make as much, per barrel, as it would from selling to EU members.Most of Russia's oil export facilities face to the west and not the east.
Vitol, one of the world's biggest oil trading houses, has made clear it will cease trading Russian oil entirely by the end of the year. Russia accounts for around 27% of the EU's crude imports and replacing that is going to come at a cost. It is why the price of Brent crude has risen today by 3.5% to $108.74 per barrel. It is unclear that the US, to which the EU will undoubtedly look in seeking to replace Russian crude imports, will be able to produce as much as will be needed.
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