On December 5, new restrictions on the supply of Russian oil come into force. The Hungarian expert spoke about the consequences of the embargo for Europe.
This is reported by TASS.
“New restrictions on Russian oil supplies, effective December 5, will weaken Europe’s energy security, increase inflation and accelerate the economic downturn,” said Oliver Hortay, director of climate and energy policy at the Hungarian think tank Szazadveg (Century’s End).
The expert notes that by imposing an oil embargo, the European political elite creates a problem similar to that which exists in the gas market. Where the main question is no longer the price, but whether Europe will have this raw material at all.
According to Hortay, this oil embargo is “unprecedented in terms of its level of intervention in the economic process” in sovereign states.
“Replacing an extremely large amount of Russian oil in an already deficient global market is a complex logistical task, where even the slightest mistake can lead to supply disruptions,” Hortay warned.
According to the expert, even if this can be done, the EU will still have to look deep into its pockets, since world oil prices are much higher than Russian ones.
“Therefore, an oil embargo will reduce energy security and increase costs, which is likely to lead to increased inflationary pressures and deepen the unfolding economic crisis.”
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