What will be the effects of the oil embargo on Russia?

The decision of the USA and the United Kingdom to embargo Russian oil due to the war in Ukraine has brought up the share of Russia in the oil imports of these countries.

According to the data of the International Energy Agency (IEA), Russia's crude oil and petroleum products exports are at a level of 10.5 million barrels per day, which is the world's third-largest oil producer after the USA and Saudi Arabia. Crude oil constitutes 7.8 million barrels of this amount.

Russia, which earned approximately 180 billion dollars in revenue from crude oil and petroleum products exports last year, makes 1.5 percent of its total crude oil and petroleum products exports to the United Kingdom and 1.3 percent to the USA.

Thus, the embargo decision announced by the USA and the UK will cover 2.8 percent of Russia's crude oil and petroleum products exports.

Therefore, the impact of the embargo decision on oil prices is expected to be limited. Oil prices are expected to rise if Europe imposes an oil embargo.

The barrel price of Brent oil, from the beginning of the Russia-Ukraine War on February 24 to March 8, increased by 37.6 percent from $96.6 to $133 percent.

Russia makes about 40 percent of its total exports of crude oil and petroleum products to Europe.

Nine percent of the US's imports of petroleum products come from Russia

Russia's share of the total imports of crude oil and petroleum products into the USA is 9 percent, and 19 percent of the UK's imports.

According to TankerTrackers.com data, the value of the last oil cargoes the US ordered from Russia was $600 million.

The US has zeroed in on oil imports from Russia since February 24, when the Ukraine offensive began.

After a long hiatus, the US started official contacts with Venezuela, which it has already sanctioned since it raised the possibility of an embargo on Russian oil.

On the other hand, there are criticisms that the ban on Russian oil may further increase gasoline prices, which have risen above $4 per gallon in the USA.

It is envisaged that the USA, which is the world's largest oil producer, can supply Russian oil from different countries in the first place and replace it with its own production in the medium term.