Russia could lose about $22 billion through oil ban

Russia could lose about $22 billion through oil ban

Russia stands to loose about $10 billion a year in oil exports revenues if the EU bans shipments, according to Bloomberg calculations.

That’s because Russia would be forced to sell its crude at a discount to Asia, where it is already changing hands at about $34 a barrel cheaper than the price of Brent futures.

Halting pipeline deliveries through the northern branch of the Druzhba pipeline to Poland and Germany would cut another $12 billion, based on 2021 volumes and the average Urals price so far this year of $85 a barrel.

Russia would continue to earn about $6 billion dollars from its exports to Hungary, Slovakia and the Czech Republic through the southern legs of Druzhba.

On May 31, President of the European Council Charles Michel announced that the EU countries had agreed on a partial ban on oil imports from Russia.

According to President of the European Commission Ursula von der Leyen, oil imports to the EU from Russia will drop by about 90% by late 2022.