Oil Again Reduces Russian Profit

by Olha Povaliaieva
Friday, June 3, 2022
Oil Again Reduces Russian Profit

The United Kingdom and the European Union agree on several restrictions on Russian oil

On June 1, it was announced that the 6th sanctions package for Russia would include a partial oil embargo. The disruption of oil shipments to European countries will cause Russia to lose $10 billion. However, Europe did not stop there. The EU countries, together with the United Kingdom, agreed on a ban on the insurance of oil barges. This was reported by the international business newspaper Financial Times.

"According to British and European officials, the UK and the EU have agreed on a coordinated ban on the insurance of ships that carry Russian oil," wrote the newspaper.

Such a move would take another part of Russia’s oil export earnings. According to the new decision, the largest insurance market Lloyd’s of London will close for Russian ships. This is not evidence of Russia’s ability to export oil. The Russian Federation would look for small insurance organizations that did not have access to all countries.

The UK will announce such a ban soon. However, the most anticipated event is the approval of 6 sanctions package for Russia. It should be approved in the next few days. After that, it will be possible to publish the remaining bans for the aggressor country’s oil.

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