Today: Thursday, 11 August 2022 year

Switzerland says Russia will benefit from EU oil embargo

Switzerland says Russia will benefit from EU oil embargo

Economic commentator Gerald Hosp says that Russia will benefit from the EU oil embargo due to rising prices and phased introduction of measures. Moscow can win if the EU imposes an oil embargo. 

“Since the loss of Russian volumes in an already tight oil market will lead to higher energy prices, Moscow can ultimately earn even more than without the embargo. The higher price then compensates for the lower volume,” says Hosp.

In the event of a ban on Russian raw materials, prices will jump instantly, which means that Russia will remain in profit in any case. The EU will not be able, at least so quickly, to completely abandon oil, which means that they will buy it at higher prices.

In addition to Russia, China and India will also benefit, as they will be able to buy oil from Russia at lower prices.