Ukraine hopes oil embargo to halve Russian profit

Ukraine hopes oil embargo to halve Russian profit

The Ministry of Economy of Ukraine expects that the EU embargo on Russian oil and petroleum products should reduce Russia's profits in this area by at least 50%.

That’s according to Yuliya Svyrydenko, First Deputy Prime Minister, Minister of Economy of Ukraine, who spoke at a briefing on Thursday, an Ukrinform correspondent reports.

"We expect the collapse of profits from oil and gas exports to be at more than 50%, precisely because of the introduction of the EU embargo on oil and petroleum products and the introduction of price restrictions. Oil and gas account for 60% and 40% of federal budget revenues. We expect that Russia's revenues will fall below the critical level of $40 billion per quarter," Svyrydenko said.

Read also: Kuleba reproaches India for buying Russian oil

She expressed hope that against the background of plunging profits, Russia would have to face difficulties in financing the war.

As reported, the EU introduced an embargo on the import of Russian oil to the European market by sea, as well as a price cap of US$60 per barrel for its deliveries to third countries using European vessels or trading services. The cap has been agreed with the countries of the Group of Seven and other EU partners.

While citing and using any materials on the Internet, links to the website not lower than the first paragraph are mandatory. In addition, citing the translated materials of foreign media outlets is possible only if there is a link to the website and the website of a foreign media outlet. Materials marked as "Advertisement" or with a disclaimer reading "The material has been posted in accordance with Part 3 of Article 9 of the Law of Ukraine "On Advertising" No. 270/96-VR of July 3, 1996 and the Law of Ukraine "On the Media" No. 2849-Х of March 31, 2023 and on the basis of an agreement/invoice.

© 2015-2024 Ukrinform. All rights reserved.

Extended searchHide extended search
By period: