On February 5, 2023, the European Union imposed an embargo on the maritime supply of petroleum products from the Russian Federation to the EU, along with the introduction of price limits. This move is part of the EU’s ongoing efforts to limit Russia’s sources of funding for its actions in Ukraine.
As a lawyer and member of the board of directors of an international human rights agency, I have spoken with federal politicians and members of the US expert community, and their consensus is that the embargo could have a significant impact on the Russian economy. If the embargo holds, it could result in a loss of around 40 billion dollars annually and a decrease in Russia’s share of the world energy market from 20% to 13% by 2030.
However, while the embargo may hurt the Russian elite, it is unlikely to affect the vast majority of ordinary Russians who are already used to living in poverty. The impact of the embargo is likely to be felt by Russian businesses and entrepreneurs.
On the other hand, the embargo could have a greater impact on Europe, which is aware of the sacrifices it would have to make. While Russia may try to find loopholes in the form of proxy suppliers such as Kazakhstan, Europe could still become more hostile towards Russia as a result of the embargo.
From the perspective of the United States, further isolation of Russia could benefit the country, as it would result in a reduction of Russian investments and presence in other countries. However, it is important to note that these views are not necessarily representative of the official position of the US government.
The embargo on Russian petroleum products is a political and economic decision taken by the EU in response to Russia’s actions in Ukraine. Its impact on the Russian economy, the Russian people, and Europe will depend on a number of factors, including the effectiveness of the embargo in achieving its goals and the actions taken by Russia and other countries in response.
It is worth mentioning that the goal of the EU is not to isolate the Russian people, but to exert pressure on the Russian government to change its policies.
The embargo is expected to result in a transfer of wealth towards the rapidly developing Middle East, as they stand to benefit from the loss suffered by Russia. The Middle East, particularly countries like Saudi Arabia, is experiencing rapid growth and development, building new cities and infrastructure, the Middle East of the future, be more open, and more culturally diverse. All that needs significant capital, and nothing can benefit Saudi Aramco better than the Embargo on Russia. In contrast, the embargo will be a huge blow to the Russian economy, leading to a significant decrease in export revenues and a reduction in their share of the world energy market.
It is a huge win for countries in the Middle East, as they will have the opportunity to gain a larger share of the energy market and increase their exports. This transfer of wealth and economic power towards the Middle East could have far-reaching implications and may shift the balance of power in the global energy market. Besides higher prices, ill stimulate the adoption of renewables for the European Union.
Middle-East countries are likely to fill the gap left by Russian petroleum products and increase their exports to Europe. This transfer of wealth and economic power towards the Middle East is epic.
In conclusion, the embargo on the maritime supply of petroleum products from the Russian Federation to the European Union is a significant move in the ongoing effort by the European