KHANTY-MANSIYSK (Pakistan Point News / Sputnik - 31st August, 2022) MANSIYSK, Russia, August 31 (Sputnik) - The deputy head of Russia's oil major Gazrom Neft, Vadim Yakovlev, believes that the European Union's embargo on Russian oil will have no significant impact both on his company or the whole market, adding however that it will result in the restructuring of logistics routes.
On July 21, the EU adopted a new, seventh package of sanctions against Moscow, including gradual phase-out of Russian oil. It provided for a complete import ban on all Russian seaborne crude oil as of December 5, 2022, and petroleum products as of February 5, 2023. Meanwhile, oil coming through the Druzhba pipeline was not subjected to restrictions. The bloc seeks to ban all Russian oil imports in the future.
"I do not expect that the introduction of the embargo will significantly affect the volume of supply and demand," Yakovlev told reporters.
In particular, Gazprom Neft neither stopped nor postponed the implementation of any hydrocarbon production projects after the departure of Western partners from Russia, the company's top manager said, adding that the firm had no plans to withdraw from its foreign projects.
"There is zero impact so far," Yakovlev said.
At the same time, restrictions created by Western countries are leading to the restructuring of logistics routes, given that Russian companies are moving to new markets displacing previous suppliers, Yakovlev added.
On February 24, Russia began a military operation in Ukraine responding to calls for help from the breakaway republics of Donetsk and Luhansk. The West and its allies responded by imposing comprehensive sanctions against Russia, with the EU pledging to end its dependence on Russian energy supplies.
