Europe is experiencing its worst energy crisis in decades. Recently, price restrictions on Russian oil and an embargo on Russian offshore oil came into effect, which set the export price of Russian crude oil at $60 per barrel. As a countermeasure, Russia announced that it does not recognize the price cap and will not supply oil to unfriendly countries that impose price limits on Russian oil.
As a result, supply disruptions and soaring gas prices have become inevitable for the European public as Europe prepares for winter.
And Russia has just announced that it will cut off supplies to Europe, which will change everything! The main issue with the current sanctions is not the price cap, but the fact that the EU, G7 countries and Australia will all refuse to buy Russian crude since December 5. Considering the imports of the countries concerned in 2021, Russia will probably lose 50% of its crude oil exports compared to last year. At the same time, however, Western countries do not seem to be ready to withdraw Russian oil from the international market altogether, and have therefore chosen to impose measures that target Russian oil prices and shipping services with restrictions. The countries imposing sanctions are also concerned that the disappearance of such a large amount of Russian oil from the market could lead to price spikes that would be detrimental to their economies and consumers.
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