The new package may not be the decisive blow to Russia’s oil and gas revenues that many wished for. But It is still hefty. Up to 90% of European imports of Russian crude are covered by agreements to phase them out by year end while allowing pipeline-dependent importers to continue to buy. All seaborne imports are banned. A Joint #UK - #EU move also bans insurance firms from insuring and reinsuring Russian crude shipments, threatening exports to non-European markets with a limited availability of experienced insurers confident of how to manage #sanctions risks.
Even this watered-down import ban is a huge gamble for #Europe. Eurozone #inflation surpassed 8% year-on-year in May, about half of which can be attributed to energy and food. Brent crude is trading above $ 120 a barrel with every expectation that prices will continue to rise. Europe is committed to rewiring global flows of crude oil despite the economic pain. #Russia cannot readily redirect all affected production elsewhere to offset these incoming losses. Nor can it maintain its geopolitical influence as an #oil power at this rate.

https://ridl.io/europe-s-gamble-and-the-end-of-russia-s-oil-power/ #usa #iraq #saudiarabia #iran #economy