The Limited Times

Now you can see non-English news...

End of Russian oil for countries that use the price cap: an impact on France?


From February 1, 2023, “the delivery of Russian oil and petroleum products to foreign legal entities and other parties

They say revenge is a dish best served cold.

Vladimir Putin waited almost a month to pronounce the sentence, after the decision at the beginning of December to cap the price of a barrel of Russian oil at 60 dollars, after the agreement to this effect sealed by the European Union, the G7 and Australia .

Those who practice it will be deprived of all oil imports from Russia from February 1, the Russian president has decided.

From February 1, 2023, "the delivery of Russian oil and oil products to foreign legal entities and other individuals is prohibited" if they use the ceiling price, is it written in a decree signed this Tuesday by Vladimir Putin .

The decree, which Russia had already anticipated and announced, specifies that this measure is planned for a period of five months, "until July 1, 2023".

At the beginning of December, the 27 Member States of the European Union, the G7 countries and Australia had agreed, after months of negotiations, on a cap on the price of Russian oil for export at 60 dollars. per barrel.

In fact, only oil sold by Russia at a price equal to or less than 60 dollars can continue to be delivered.

Beyond this ceiling, it is forbidden for companies to provide the services allowing its maritime transport (freight, insurance, etc.).

An oil that we have already gotten rid of

Should we expect any consequence from Vladimir Putin's measure in France?

A priori, not directly.

Russian oil is weak in our imports.

According to INSEE data, in 2021 it was only 8.8% of crude oil imported into France, behind Algeria, Nigeria or Libya.

This share, without data, must have fallen since the start of the war in Ukraine, the European Union and the G7 had encouraged them to free themselves from Russian hydrocarbons with the establishment of an embargo.

Since December 5, no more drop of Russian oil is supposed to enter the territory of the European Union by sea.

The price of a barrel of Russian oil (crude from the Urals) is currently fluctuating around 65 dollars, barely more than the fixed ceiling, implying a limited short-term impact of this measure anyway, according to many observers.

Even Ukrainian President Volodymyr Zelensky deplored "a weak position" of his Western allies when he was put in place.

"Russia is looking for other markets for its crude and the EU is turning to other suppliers," summarizes Francis Perrin, research director at Iris, on its website.

A redirection of global oil flows is underway with more Russian oil going to Asia and more European oil imports coming from the United States, the Middle East or Africa.


It remains to be seen whether Vladimir Putin's decision can end up weighing on the global market and have an indirect impact on French purchases, potentially in competition with other countries looking for new suppliers.

Source: leparis

All business articles on 2022-12-27

You may like

News/Politics 2023-02-21T16:37:39.111Z

Trends 24h

Business 2023-03-25T10:42:12.946Z


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.