European Union bans Russian diesel, oil products over Ukraine
In an effort to reduce its reliance on Moscow for energy and as retaliation for its invasion of Ukraine, Europe has put an embargo on Russian diesel gasoline and other refined oil products.
Along with the embargo on Sunday, the Group of Seven (G7) allies—the United States, Britain, Germany, France, Italy, Japan, and Canada—also agreed on a price ceiling.
The objective is to keep Russian fuel flowing to nations like China and India while preventing a dramatic price increase that would harm consumers throughout the world and cut down on the revenues funding Moscow’s budget and war.
Diesel is essential for the economy since it powers vehicles, goods-transporting trucks, farm machinery, and industry equipment. Due to increased demand following the COVID-19 epidemic and capacity restrictions, diesel prices have increased, which has pushed up the cost of other items globally.
As the 27-nation European Union seeks out new suppliers of diesel from the US, Middle East, and India to replace those from Russia, which at one point supplied 10% of Europe’s total fuel demand, the new restrictions raise uncertainty about costs. These are farther trips than those from Russian ports, straining the tankers that are available.
Former International Energy Agency analyst Neil Atkinson told Al Jazeera that prices were not going to be significantly affected by EU restrictions on Russian goods.
The G7’s $100 per barrel price cap for diesel, jet fuel, and gasoline will be implemented by prohibiting insurance companies and transportation companies from handling diesel priced above the maximum. The majority of the businesses are situated in western nations.
It is meant to function similarly to the $60 per barrel cap on Russian crude that went into effect in December. Later, the oil and diesel lids may both be tightened.
