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EU to deepen energy dependence by embargoing Russian oil products — expert

It is noted that the bulk of the Russian fuel export predominantly had the demand on Western markets

MOSCOW, January 20. /TASS/. The European Union will not get rid of the energy dependence by imposing the embargo on Russian petroleum products but will deepen it further, expert of InfoTEK analytical center and Associate Professor of the Finance University under the Russian Government Valery Andrianov said.

Europe expects to substitute deliveries of Russian petroleum products - largely diesel fuel - by supplies from China and India, the expert said. The United States and the Middle East can also scale up deliveries of petroleum products to the EU.

"Firstly, we see this dependence remains - the lion’s share of diesel fuel supplies from India and China will be provided for owing to Russian oil refining. Secondly, the question arises amid complex relations between the Western world and China, can it be that Europe deepens its dependence on unpredictable geopolitical factors?" Andrianov said in his column posted by InfoTEK.

"It appears that instead of acquiring the genuine energy independence Europe is becoming more and more entangled in political nets, finally positioning itself in dependence on external centers of political decision-making," the expert noted.

The bulk of the Russian fuel export predominantly had the demand on Western markets, Andrianov said. According to Argus data, Western countries accounted for 89.5% all petroleum products exported by Russia, while just 10.5% of them were delivered to the East.

"The logistics of Russian petroleum products requires a drastic change. However, while we are able to redirect oil supplies to markets of Asia-Pacific countries, this will not be so with petroleum products to the full extent - China and India are net exporters of gasoline, jet fuel and diesel fuel themselves," the expert stressed.

Problems can occur after the EU embargo comes into force with exports of Russian products with the highest margin - gasoline and diesel fuel, which in its turn may lead to contraction of oil refining in Russia, Andrianov noted. Development of the domestic market can be the way out in such situation, he added.

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