Analysts say that the level of Western sanctions against Russia has reached the final stage as the European Union (EU) has begun drafting a Russian oil embargo, which has been delayed until the end. Russian President Vladimir Putin seems to be rushing to diversify energy exports to Asia and Latin America in response to Western energy sanctions.
The New York Times (NYT) reported on the 14th (local time) that the EU has begun to prepare for a phased ban on Russian oil. However, EU member states will begin consultations after the French presidential election on the 24th of this month, considering the impact of soaring fuel prices. Considering that the schedule will be delayed due to Easter, it’s actually the end of this monthDiscussions will take place in early May, the NYT said.
The oil embargo, like the previously announced coal embargo, will be implemented after a four-month conversion period. According to the NYT, this is a measure to prevent political turmoil in some European countries, which are highly dependent on Russian oil, as well as soaring fuel prices. In particular, if Germany, the EU’s “economic engine,” wants to cut off deals with Russia, which supplies 34% of the total oil, it must secure not only alternative energy supplies but also land transportation to replace Russian pipelines during this period, the NYT explained.
With the EU holding the last card, which will be the strongest means of pressure on Russia, President Putin ordered countermeasures such as; expanding supply to the domestic market, diversifying export areas, developing oil and gas processing in preparation for a sharp drop in demand for Russian energy. Foreign media reported that he, who presided over a video conference on the energy sector, stressed the need to hurry to expand export infrastructure in Asia-Pacific, Latin America, and Africa to resolve the situation in which most of the exports of natural gas and oil have been concentrated in the West.
Russian state news agency said Putin’s energy exports to the West will inevitably decline in the near future, adding, “We need to gradually shift our exports to the fast-growing southern and eastern markets (Asia).”
The May West Texas Intermediate (WTI), which is traded on the New York Mercantile Exchange due to concerns over EU sanctions, closed at $106.95 a barrel, up 2.6 percent from the previous day, continuing its upward trend for three consecutive trading days.
