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Federal government sees Russian oil export ban calmly


Russia wants to respond to the oil price cap with an export ban - but the federal government sees "no practical significance" in this: Germany can get by without Russian oil.

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PCK refinery in Schwedt: "Supplied with sufficient quantities of crude oil"

Photo: Annette Riedl / dpa

It was to be expected that Vladimir Putin would not react enthusiastically to the EU, G7 and Australia oil price cap: According to the Kremlin, countries that apply the price cap should no longer receive Russian oil.

But the federal government is apparently calm about the Russian threats.

The ban has "no practical meaning," said a spokesman for the Federal Ministry of Economics.

Germany has been preparing “since early summer to replace Russian oil exports”.

Since then, work has been done to "guarantee security of supply and it will continue to be guaranteed".

The important refinery in Schwedt, which had previously been supplied with Russian oil, was "supplied with sufficient quantities of crude oil" from the ports in Rostock and Gdansk, the spokesman continued.

The EU, the group of seven leading industrialized nations (G7) and Australia had agreed on a price cap of 60 dollars (56.52 euros) for Russian crude oil, which has been in effect since early December.

Germany and its partners want to reduce Moscow's lavish income from oil sales.

At the same time, it should be ensured that Russia continues to supply the world market.

The countries also want to enforce the oil price cap internationally using their market power in sea transport: EU companies cover a large part of the insurance for tankers.

They are no longer allowed to transport Russian oil at a higher price.

In response to the plans, the Russian President signed a decree on Tuesday that would ban supplies to states and companies that adhere to the price cap from February 1.

The decree states: "The supply of Russian oil and oil products to foreign companies and persons is prohibited if the mechanism for fixing a price cap is directly or indirectly built into these contracts."

The ban on oil shipments comes into effect on February 1.

For oil products such as gasoline and diesel, the Russian government should set the exact date, although it cannot be earlier than February 1, the decree says.

Initially, the decree is valid until July 1, 2023.

Russia is the second largest oil exporter in the world.

In 2021, the country was the EU's second largest oil supplier.

According to the European Union, 90 percent of Russian oil imports will be stopped by the end of 2022 because of Russia's actions against Ukraine.


Source: spiegel

All business articles on 2022-12-28

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