Canada bans Russian crude

RUSSIA / FSU POLITICS - In Brief 01 Mar 2022 by Alex Teddy
On February 28 Ottawa made the announcement and said it was to penalize Russia for the invasion of Ukraine. Canada bought only USD 170 million of Russian oil 2021 so the ban will have minimal impact on both countries. Canada has large oil reserves of its own.What would make a big difference is if the EU stopped purchasing hydrocarbons from Russia. The EU buys about 30% of its energy from Russia. When it comes to natural gas that is 40%. Hungary and Finland buy most of their energy from Russia.Russia has not cut off energy exports to the EU. That would be disastrous for their economies of both Russia and the EU. The price of Brent crude leapt 4.6% on February 28 to USD 102 per barrel.Oil and gas account for 50% of Russia's export earnings and 20% of its economy. Russia also exports food and metals but no one is talking about sanctions on them.The UK buys only 3% of its energy from Russia and could stop all oil and gas imports from Russia. Fuel prices in the United Kingdom are at a record high. The United States has said it is considering sanctions against Russia oil and gas.If Western countries refuse to buy Russian oil and gas then how long will they be willing to pay much higher prices for?

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