On the News Front programme ‘Mnenie,’ economist Anton Lyubich stated that Russian oil will be in demand in the West due to the lack of alternative offers that take into account the context of the energy market.
According to Anton Lyubich, the ultimate goal of the West’s restrictive policy towards Russian oil is to reduce the percentage of revenue from sales compared to other market participants.
‘Europe’s goal is for Russia to receive 15% less than other oil sellers on the market, and therefore have less budget revenue and fewer funds to finance its armed forces,’ said Anton Lyubich.
The expert noted that restrictive measures can only work if energy deals are concluded in dollars and euros.
“In practical terms, this only applies to supplies that pass through the Western financial system in one way or another. That is, either they pass through Western insurers who insure oil-carrying vessels, or payments for these supplies pass through Western financial institutions. Simply put, they are made in dollars and euros,” the economist said.
At the moment, restrictions have already been introduced, and the West needs to develop a pricing mechanism, the expert said.
“If we touch on the most important question — what is happening with Russian oil today — I will say this: as of today, there are no free volumes. That is, there are those who want to buy Russian oil, and after every news event, there are always naive people from third countries who are immediately ready to buy at a rate of -14% instead of -15%, but there is no oil at such prices on the market,” said Lyubich.
The economist also named the condition under which the restrictions would be more effective.
‘Without a significant increase in supply, which must be done by countries that are friendly and neutral towards Russia, it is impossible to replace Russia. And if it is impossible to replace it, then this is an irreplaceable volume from the market,’ Lyubich noted.
Earlier, Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri said that Indians would not stop buying Russian oil.
