EU members are reconciling a proposed oil embargo on Russia over Ukraine. Nevertheless, talks failed this week due to a veto from Hungary, which is heavily dependent on Russian oil imports.
According to Putin, some EU states, in whose energy balance the share of Russian hydrocarbons is exceptionally high, will not be able to do this for a long time to ditch Russian oil.
Talking at a televised meeting with domestic oil managers and government officials, Putin also stated that Western sanctions and a potential embargo on Russian oil had raised global oil prices.
He declared that Europe endangered paying the most expensive energy prices in the world long-term by leaving Russian energy supplies. At the same time, this would damage the competitiveness of its industry.
He also stated that Western sanctions had stoked inflation across Europe itself.
Oil Production Decline on The Way
Russia is facing an oil production downfall unseen since the destruction of the Soviet Union because of the Western sanctions; it highly problematizes the sale of Russian oil globally.
There are tectonic changes in the oil market. Making business as it had been done before, in line with the old model, looks doubtful, Putin said, counting that it was essential to set up a complete chain from producer to end buyer.
He has pledged state help for domestic oil producers, including facilitating access to loans and insurance.
