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Russia sanctions: Can the world cope without its oil and gas? – BBC – 31.05.22

The European Union has agreed to ban all Russian oil imports which come in by sea. BBC Reality Check by Jake Horton, Daniele Palumbo & Tim Bowler. It says new sanctions against President Putin's "war machine" could cut the amount of oil it buys from Russia by 90%. The US and UK have also announced bans on Russian fossil fuels.

How severe are the EU sanctions?

Russia has been supplying about a quarter of the oil EU countries import. That is about 2.2 million barrels per day of crude oil and 1.2 million barrels of oil products.

According to the Carnegie Endowment, a US think tank, this has been earning Russia more than $1bn (£800m) a day.

The EU plans to ban Russian oil imports arriving by sea by the end of this year. This would cut EU nations' oil imports from Russia by two-thirds.

The EU will continue to allow 800,000 bpd of oil imports brought in by pipeline, as a "temporary measure". That's because countries like Hungary and Slovakia depend on it.

However, Germany and Poland - which also import Russian oil by pipeline - say they will stop doing so by the end of this year.

European Commission President Ursula von der Leyen says that after this, Russia will only be exporting "10 or 11%" of the oil it had previously been selling to EU states.

In addition to the EU's measures, the US has declared a complete ban on Russian oil, gas and coal imports. The UK is to phase out Russian oil imports by the end of the year.

  • What sanctions are being imposed on Russia?

What impact could oil sanctions have on Russia?

The EU has called its sanctions a "landmark decision to cripple Putin's war machine".

Helped by soaring energy prices, Russia received an estimated €400bn ($430bn, £341bn) over the past year from oil and gas exports to Europe.

The EU hopes it will lose a big chunk of this revenue. However, its sanctions will take several months to come into full effect, and even then Russia will be able to sell its oil elsewhere around the world.

"Countries in Asia might buy up to one million barrels per day more crude oil from Russia than they are taking now," says David Fyfe, chief economist with energy data firm Argus Media.

"As a result of all the sanctions announced so far, Russia may lose between one third and a half of its total oil revenues, but not all of them."

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Russia sanctions - Can the world cope without its oil and gas - BBC Reality Check - 31.05
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