Increase in production and export of crude oil from Russia in the wake of EU bans

Moscow: – The European Union approved a ban on crude oil imported from Russia on Friday. Five-member countries of the union have been exempted from the ban. The implication is that the union’s decision to ban Russian imports will not make much of a difference to Russia. Russian media reported that Russia had started producing 10.2 million barrels per day in May. It has also been claimed that crude oil exports have increased by 13 per cent.

In the last few days, the issue of Russian fuel imports from European countries has become very hot. The aggressive stand taken by a member country like Hungary in this regard had put the union in a tight spot. However, it is coming to light that the union has broken the deadlock by settling the issue in the form of concessions. On Friday, the union’s foreign chief Josep Borrell informed about the ban on Russian oil. Five countries, Hungary, the Czech Republic, Slovakia, Bulgaria and Croatia, were exempted from the ban.

All the five countries in the union will be able to import Russian oil until alternative arrangements are in place. Apart from these countries, other countries will stop importing crude oil from Russia until this year. It is claimed that this will eliminate 90 per cent of the crude oil coming to Europe from Russia. The European Union is said to be paying $450 million a day for Russian oil imports.

Meanwhile, it has been reported that the bans imposed by western countries, including the European Union, will not impact Russia. In May, Russia increased its crude oil production to 10.2 million barrels per day. In April, the production was close to 10 million barrels per day. Along with production, Russian oil exports have also increased. Russian media reported that Russian companies exported 102.7 million tonnes of oil in the five months from January to May. Asian countries are said to have a significant share in this.