Today, Sunday, the ban on importing Russian petroleum products - such as diesel and gasoline - into the European Union came into force, amid a warning of an exacerbation of a crisis in energy supplies around the world.

The measure aims to reduce Russia's revenues from energy sales and its ability to finance its war on Ukraine.

According to the latest data issued by the European Statistical Office (Eurostat), Russia exported petroleum products - such as diesel - with a value of more than 2.3 billion euros ($2.5 billion) to the European Union last October.

Germany alone imported products worth about 558 million euros.

Russia supplied Europe with more than 720,000 barrels per day of diesel, and the figure exceeded the barrier of one million barrels before the Russian-Ukrainian war in February 2022.


Sanctions package

The new ban was decided last June, within the framework of the sixth package of sanctions imposed by the European Union on Russia because of its war on Ukraine, and it is expected that there will be a temporary exemption for some European Union countries.

And the member states of the European Union, the Group of Seven and Australia announced last Friday that they had reached an agreement to set a ceiling for the prices of Russian oil derivatives.

The move is the latest in an international effort to target Moscow's main exports.

The agreement sets a ceiling for the price of a barrel of more expensive oil derivatives, such as diesel fuel, at $100, compared to a ceiling for lower-quality products at $45, according to officials.

Last December, the European Union imposed an embargo on Russian crude that arrives by sea, and set, with its G7 partners, a ceiling of $60 a barrel on exports around the world.


warning

And Saudi Energy Minister Prince Abdulaziz bin Salman warned of the consequences of Western sanctions on Russia leading to a shortage of energy supplies in the future.

The Saudi minister said - at a conference held in Riyadh - yesterday, Saturday, that the sanctions, the embargo, and the remarkable decline in investment in the traditional energy sector will all lead to a global supply shortage crisis.

Prince Abdulaziz bin Salman reaffirmed the need for global energy markets to trust the "OPEC Plus" alliance.

"We are a responsible group of countries. We put all policy issues related to energy and oil markets in one (basket), (but) we do not get involved in political issues," he said.

In the last quarter of 2022, the alliance was subjected to sharp criticism from the US administration, which accused it of siding with Russia by reducing global oil supplies.


The “OPEC Plus” alliance - which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia - agreed last year to reduce the production target by two million barrels per day, or about 2% of global demand, from November until the end of 2023. to support the market.

The "OPEC Plus" committee - which met last Wednesday - also supported this decision.

US Treasury Secretary Janet Yellen said last Friday that the new maximum price limits for Russian oil products from the West will further limit Russian oil revenues, while preserving the supply of global energy markets.

While the Kremlin condemned the Western move, indicating that it will increase the imbalance in the international energy markets.

Russia is a major oil producer with an average daily production of 11 million barrels, and it is also a major exporter with a daily average of 5 million barrels under normal conditions.

Estimates of global investment banks indicate that oil prices in 2023 will average between $100 and $110 a barrel, amid high demand - especially from China - and damage to supplies from Russia.