Bloomberg: Russia may lose about $22B due to oil embargo

Russia will lose about $22 billion in oil revenues due to the EU embargo, reported from Bloomberg.

Agency analysts say that despite the losses, Russia will be able to save $10 billion of annual revenues through proceeds from supplies to Hungary, Slovakia and the Czech Republic via the Druzhba oil pipeline.

Russian President Vladimir Putin stands to loose about $10 billion a year in oil exports revenues from shipments, according to Bloomberg calculations. That’s because Russia would be forced to sell its crude at a discount to Asia, where it is already changing hands at about $34 a barrel cheaper than the price of Brent futures.

Halting pipeline deliveries through the northern branch of the Druzhba pipeline to Poland and Germany would cut another $12 billion, based on 2021 volumes and the average Urals price so far this year of $85 a barrel. Russia would continue to earn about $6 billion from its exports to Hungary, Slovakia and the Czech Republic through the southern legs of Druzhba.

On May 30, EU leaders agreed on a partial ban on oil imports from Russia. Oil deliveries through pipelines will not fall under the embargo.

www.anews.az