A German media report revealed that imposing an embargo on Russian oil would be an “experiment with an unknown outcome” for the European economy.
Klaus Strathmann, correspondent for the German newspaper “Handelsblatt”, said in his publication that the measures taken by the European Union countries reflect the state of uncertainty. “Whether EU countries now choose to impose a price cap, a temporary moratorium with transition periods, or punitive tariffs on Russian oil, in the end, it doesn’t matter: the stakes are huge,” stresses Stratman.
He added that on oil and gas issues, “it is difficult to threaten a boycott when it is clear that there are not enough alternatives”, especially in Germany.
He also went on to say that Russian oil mainly goes to the Brandenburg oil refinery, which is cut off from West Germany’s oil infrastructure. Stratmann warned that if this oil stops flowing through the Druzhba pipeline, a sharp rise in prices in East Germany is inevitable, adding: “Alternative sources will not be available quickly enough, will not be in the required volume, and will not have the necessary characteristics. “.
Moreover, higher prices in global oil markets will also be inevitable, while Russia will be able to increase its revenues if it finds other buyers quickly enough.
As Stratman concluded, “The Europeans’ hope that other countries will refrain from buying cheap Russian oil in solidarity is naive. An oil embargo would be an experiment with uncertain results.”
After the start of the Russian special military operation to disarm Ukraine, the West escalated the pressure of sanctions on Russia. The restrictive measures mainly affected the banking and technology sectors. And calls to abandon Russian energy sources are getting louder. However, supply chain disruptions have driven up fuel and food prices in Europe and the United States.