courtesy: CNBC
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The European Union earlier this year halted imports of oil from Russia as part of sanctions imposed on Moscow after its full-scale invasion of Ukraine. But the EU still needs a steady flow of Russian diesel global markets to keep the prices stable.
Now, Russia has decided to ban its oil exports to most countries, which could have some adverse effect on Europe.
On Thursday, Russian government announced curbs, which also applies to gasoline. The government stated that the decision is taken in order to stabilise the domestic fuel prices and the restrictions are to remain in place until further notice, as reported by Reuters, citing a Kremlin spokesperson.
Diesel is considered as Europe’s economic workhouse as it is majorly used in vans and trucks moving goods and raw materials round the continent. In some countries, the fuel is also vital for heating purpose, and winter is approaching.
As per data firm Vortexa, Russia is the leading exporter of diesel at over 13% of global supply so far this year. Its recent restriction can have global impact in terms of inflation. In recent weeks, the energy prices have already risen sharply due to Russia and Saudi Arabia restricting crude oil supply.