In a few months, Russian oil will not come to Serbian market

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It has been three weeks since the European Union imposed an embargo on the import of Russian oil. The sixth package of sanctions envisaged a ban on the import of Russian oil, which is delivered by ships, with the exception of countries that do not have access to the sea. These are Hungary, the Czech Republic and Slovakia, and Bulgaria and Croatia have been given “temporary derogations” from sanctions for certain types of oil. This means that in a few months, Russian oil will not come to our market either.

The Secretary General of the Association of Oil Companies of Serbia, Tomislav Mićović, says for RTS that Russian oil will not disappear, but will find new buyers.

He points out that Russia has even exceeded the previous production from 10 to 11 million barrels per day.

“Serbia is most interested in the Mediterranean market because of its numerous ports. Russian oil was mostly supplied by oil pipelines, and since the beginning of the war, oil transportation by tankers has been growing in Ukraine. Nobody mentions the issue of pollution. 

He explains that the import of crude oil from Russia to Europe will be suspended from December 5, which will make it impossible to supply Serbia so far through the oil pipeline from the island of Krk.

“The problem will also be the import of oil derivatives that are produced from crude oil, which comes from Hungary. If those derivatives are produced from Russian oil, they will also not be able to be imported after December 5”, Micovic explained.

All countries, he says, had Russian oil in their imports and there are not many choices. The countries of the Middle East are the ones that are counted on the most when it comes to increasing oil production. The United States is already considering easing sanctions against Iran in order to compensate for Russian oil.

“Large quantities of oil from Iran and Venezuela are practically trapped in those countries due to sanctions. And while the United States consumes huge amounts of fuel, they are also one of the largest producers and can cover their market, while for Europe it is a big problem. compensate over 30 percent of the oil that has arrived from Russia so far “, explained the Secretary General of the Association of Oil Companies of Serbia.

Oil is imported to Serbia from Iraq, smaller quantities from Kazakhstan. Russian oil comes to Serbia by NIS transporting it to Krk, and from there by oil pipeline through Croatia to Serbia. Given that this is the territory of the European Union, that argument will probably be stopped.

“Serbia will have as much oil as the whole of Europe, that is, it will be supplied through the Mediterranean. Barges are not the solution, it is a painstaking process. It is possible to bring derivatives that way. Constancy is on the brink of war in Ukraine and supply from there is problematic and expensive”, says Mićović.

Road and railway traffic was used whenever it was not possible on the Danube, but even that, as Mićović says, it can be done in a short period of time, because it significantly increases the price of fuel.

“Now we all need to get used to the high price of oil. Some countries have significantly reduced excise duties or VAT. Everyone will have to change the way they tax oil. Also, this sector must not be too restrained and market prices must be taken into account. “Gasoline prices create shortages. If the costs of importers are higher than the price at which they can sell, shortages are inevitable. Imports must pay off,” Micovic said.

As he says, even if the war in Ukraine stops today, sanctions against Russia will remain for a long time, and thus these problems, RTS writes.