How much is the new ban on import of Russian oil going to affect Serbia?

On Sunday, February 5, the European Union’s embargo on maritime transport of oil products from Russia will come into force.

This is actually an extended ban on the import of Russian crude oil, which has been in effect since December 5th last year. Some analysts believe that this ban can cause oil shortages, but Serbian energy experts have more optimistic expectations. Although there will be enough diesel to satisfy market needs in Serbia, the new embargo opens up the possibility for Russian companies to engage in shadow economy in order to mitigate the effects of these sanctions, which will certainly affect the Russian energy sector.

However, since March last year, Europe has imported 770,000 barrels of diesel from Russia, the highest quantity in a long time.

As Goran Radosavljević, professor of energy economics at the FEFA faculty points out the set of sanctions, which includes a ban on the import of oil from Russia, is already creating a problem with supply. This is precisely why diesel prices here, as well as in the Mediterranean, are higher than on the global market.

“This ban basically came into force on June 5, when it was decided that contracts concluded until February 5 can be implemented, but no new ones can be concluded after that,” explains Professor Radosavljević.

He adds that diesel has found a new way to Europe from Turkey, where, according to unofficial information, companies process Russian oil and then sell it as their own.

Miodrag Kapor, an energy policy expert, believes that there should be no problems in terms of supply in Serbia thanks to the oil refinery in Pančevo which has been modernized, and it is also majority-owned by Russia, so the import of crude oil from Russia is still possible.

“This ban should not affect supply in Serbia. The (Pančevo) refinery can cover it,” Kapor adds.

(Kamatica, 24.01.2023)

This post is also available in: Italiano

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