Playing the oil lever : the EU and US together can strip Moscow of its oil revenues
Riley, Alan
Playing the oil lever : the EU and US together can strip Moscow of its oil revenues Alan Riley [Recurso electrónico] .-- Barcelona : CIDOB Barcelona Centre for International Affairs , 2022 .-- 3 p. .-- CIDOB Opinión 714 . ;
The EU and US has more leverage that first appears to deny or strip Moscow
of its oil revenues. And it can take such steps knowing that there will be only
a limited economic impact on European consumers. Russian oil exports to
the European Union are approximately 3 million barrels per day(mbd). Total
Russian oil exports are around 5mbd which provide 40% of all Russian tax
revenues. The oil sold into the EU is heavy Urals crude, which European
refineries are fitted out to take. As a result of the nature of Russian oil sold to
Europe, Moscow would face heavy switching costs to sell that oil anywhere
else. At the same time the EU and US, together allied states in the IEA have 1.5
billion barrels in the Strategic Petroleum Reserve (SPR). It would be possible
therefore to shut off Russian oil exports to the EU, and thereby closing
access to 3/5th of Russian tax revenues from its oil exports. Such a decisive
step would rapidly undermine the capacity of the Russian state to wage war
without imposing enormous costs on the EU or the US.
Petróleo Combustible Guerra Conflicto entre Rusia y Ucrania Profesional de la información
Ucrania Rusia Países de la Unión Europea
Fundación CIDOB
Playing the oil lever : the EU and US together can strip Moscow of its oil revenues Alan Riley [Recurso electrónico] .-- Barcelona : CIDOB Barcelona Centre for International Affairs , 2022 .-- 3 p. .-- CIDOB Opinión 714 . ;
The EU and US has more leverage that first appears to deny or strip Moscow
of its oil revenues. And it can take such steps knowing that there will be only
a limited economic impact on European consumers. Russian oil exports to
the European Union are approximately 3 million barrels per day(mbd). Total
Russian oil exports are around 5mbd which provide 40% of all Russian tax
revenues. The oil sold into the EU is heavy Urals crude, which European
refineries are fitted out to take. As a result of the nature of Russian oil sold to
Europe, Moscow would face heavy switching costs to sell that oil anywhere
else. At the same time the EU and US, together allied states in the IEA have 1.5
billion barrels in the Strategic Petroleum Reserve (SPR). It would be possible
therefore to shut off Russian oil exports to the EU, and thereby closing
access to 3/5th of Russian tax revenues from its oil exports. Such a decisive
step would rapidly undermine the capacity of the Russian state to wage war
without imposing enormous costs on the EU or the US.
Petróleo Combustible Guerra Conflicto entre Rusia y Ucrania Profesional de la información
Ucrania Rusia Países de la Unión Europea
Fundación CIDOB