The oil sector … the boom of big business, and Europe tends to ban it from Russia

On Sunday, Ukrainian Foreign Minister Dmytro Kuleba revealed that he had told the European Union’s head of foreign policy, Josep Borrell, that the next round of EU sanctions should include an oil embargo on Russia.

“I have also confirmed that there is no alternative to granting Ukraine EU candidate status,” Kuleba wrote on Twitter after contacting Borel. “We have paid separate attention to a safer evacuation of besieged Mariupol.”

Sixth set of penalties

In addition, Reuters quoted EU diplomats as saying that the bloc tended to impose a ban on Russian oil imports by the end of the year, following talks between the European Commission and EU member states over the weekend.

The European Union is preparing a sixth set of sanctions against Russia over its attack on Ukraine on February 24, which Moscow calls a special military operation.

The new sanctions package is expected to target Russian oil, Russian and Belarusian banks, as well as more individuals and companies.

The commission, which coordinates the EU’s actions, has held so-called “joint” talks with small groups of EU countries and will strive to tighten its sanctions plan before the EU ambassadors meet in Brussels next Wednesday.

The European Union’s energy ministers will meet in the Belgian capital on Monday to discuss the issue.

Diplomats said some EU countries were able to end their use of oil before the end of 2022, but other countries, particularly members in the south, were worried about the impact on prices.

The diplomats added that Germany, one of the largest buyers of Russian oil, was apparently ready to agree to cease imports by the end of 2022, but there were still reservations from countries such as Austria, Hungary, Italy and Slovakia.

Jörg Cookes, an assistant to German Chancellor Olaf Scholz, noted that Germany supports the European Union’s ban on Russian oil imports, but needs a few months to secure alternatives.

“We are asking for a reasonable period of time to stop (dependence on Russian oil). We want to stop buying Russian oil, but we need time to make sure we can get oil from other sources in our country,” he said. Cookes was quoted as saying. as stated by the Financial Times.

He noted that Germany wanted to ensure that a refinery in Schwete, in northeastern Germany, operated by the Russian state oil company Rosneft, could be supplied with non-Russian oil, which brought oil tankers to Rostock on the Baltic Sea.

He told the newspaper that in order to do so, the depth of the port of Rostock must be increased, as well as work on the pipeline connecting it to Schweit.

Some EU countries have proposed to opt for a maximum price, which they are willing to pay for Russian oil. But the plan will force them to pay higher prices to get supplies from elsewhere.

Oil companies’ business boom

The business of giant oil companies flourished during the first quarter of this year, the period that saw the beginning of the Russian attack on Ukraine.

The reason is due to the rise in oil prices above $ 100. The expected profits of these companies amount to $ 34 billion at the end of March.

These funds will flow into the company’s coffers and accounts to be recycled to new projects, after returns have been allocated to shareholders, and others as a result of the damage it suffered after its withdrawal from Russia in response to Western sanctions imposed on Moscow is set.

ExxonMobil, Chevron, Total, Royal Dutch Shell, British Petroleum, and others are companies that have benefited and at the same time been harmed by the Russian attack. Which on the one hand contributed to the rise in gas and oil prices, and on the other hand forced to give up some of its assets in Moscow.


The most prominent projects, from which these companies were forced to withdraw, are BP’s acquisition of a fifth of the capital of the Russian giant Rosneft, and the withdrawal of US ExxonMobil from the Sakhalin-1 project. In addition to the above, Shell has several investments in Russia.

With the results of these companies approaching to crystallize at quarterly level, it is clear that they are capable of breaking out of the bottleneck.

Initial indicators suggest it holds unprecedented liquidity, as its free cash flow is expected to reach about $ 36 billion; The value is the highest in 14 years.

The giant oil companies are pinning hopes on expansion in new countries, and also betting on their investments in clean energy to remain the most profitable, and to remain the most influential on the political decision in their countries.

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