Oil is vital in the Russia-Ukraine Conflict

RUSSIA / FSU POLITICS - In Brief 20 Jun 2022 by Alex Teddy
China is purchasing more Russian oil than ever. Oil sales between January and May 2022 were up 40%. Russia is selling it at a discount. Russia recently completed a bridge across the Amur River to China. Russia's relationship with China is more vital than ever. Russia is reducing gas sales to the EU. It has been reducing them since late 2021. On June 15 France announced it had not received gas from a pipeline coming through from Germany. Gas from Russia to Italy was almost nil on June 17. Russia blamed technical problems. The EU says that Russia is penalizing the EU for supporting Ukraine.  On June 16 Baker Hughes announced it will no longer service Russian Liquified Natural Gas projects. Extant plants are at risk and new projects are also jeopardized by this. Baker Hughes engineers had been working on Sakhalin 2 and on the Yamal Field. Russia will have trouble finding spare parts for these projects. Russia is not able to service its oil industry despite striving to do so for decades.  On June 20 the Russian Governor of Crimea said that Ukraine had fired at an oil rig in the Black Sea. There were 109 oil workers on the rig and some have been evacuated. Other workers are still missing. Ukraine has neither confirmed nor denied the attack. Moscow vowed vengeance. This is the first allegation of a Ukrainian attack on Russian oil facilities. 

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