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Eastern Express 2.06

EU countries have finally agreed to embargo Russian oil. This is a serious blow to Moscow, which will have to find a market for 174 million barrels. Russia is urgently looking for markets. The best option for Russia would be to sell its oil to other countries. China and India are most often mentioned in this context.

Russia choking on its oil

Russia never envisioned storing oil inside their own country. Oil would go directly to consumers, be transported by trains to the compressor stations and then transported by oil pipelines to the West. Russia is not prepared for storing its own oil.

Looking for outside partners

The Russians are also looking for opportunities to locate their oil abroad. The Kremlin does not want and especially cannot afford to cut its output. This would mean high costs. Much of Russia’s oil is extracted from deep underground Siberian wells. This infrastructure is often outdated and the oil is highly waterlogged. Production must be continuous.

Eastern Express’ guest

To shed more light on the issue is Karol Byzdra, journalist over at Energetyka24.pl

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