Russia's Losses From Oil Embargo Will Be Equal To Third Of Its Military Budget In 2021 - Halushchenko

Energy Minister Herman Halushchenko says Russia's losses from the oil embargo agreed by the European Union will be equal to a third of Russia's military budget in 2021.

This is stated in the message of the Ministry of Energy with reference to the publication of Halushchenko on Facebook, Ukrainian News Agency reports.

"The ban is partial and will apply to tanker oil and oil products, this is 2/3 of supplies to the European Union. A temporary exception is assumed for pipeline oil. But by the end of the year, imports of Russian oil to the EU should be reduced by 90%. Bloomberg estimates the annual losses of the Russian Federation due to the EU embargo at about USD 10 billion, because Russia will be forced to sell its oil to Asia at a significant discount. Another USD 12 billion in losses will be brought by the refusal of Poland and Germany from Russian oil, which countries receive through the northern branch of the Druzhba pipeline,” he wrote, commenting on the decision of the European Union to impose an embargo on Russian oil.

According to Halushchenko, the estimated losses of the Russian Federation from the oil embargo will amount to approximately a third of the Russian military budget in 2021.

"Unfortunately, it did not work out to "ban" oil immediately. But the very fact of the embargo will make Russian oil even more "toxic," open the way for new suppliers, and undermine the Kremlin's economic ability to finance the war. I am grateful to all the leaders of the European Union for another manifestation of solidarity with Ukraine, as well as the European Commission, which made every effort to make this decision," he stressed.

The European Union, as part of the 6th package of sanctions against Russia, decided to impose an oil embargo against Russia, with a temporary exception for pipeline oil supplies.

As Ukrainian News Agency earlier reported, the European Commission is preparing to submit a plan to abandon Russian energy resources by 2027 for EUR 210 billion.

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