The EU could have better alternatives to weaken Russia, such as punitive tariffs, instead of the proposed ban on imports of Russian crude that will only raise Moscow’s oil revenues, claims the head of economics and next-generation research at Swiss wealth manager Julius Baer, Norbert Rucker.
The ban was proposed by the EU authorities but its impact on Russia is highly debatable, the analyst said in an interview with Swiss news outlet 20 Minuten
The plan for its all 27 member states to ban Russian oil imports was unveiled earlier this week by the European Union, which is set to hit Russia’s national finances as part of the unprecedented sanctions campaign the West launched against Moscow over its military operation in Ukraine.
Pointing out that putting pressure on China and India would make it difficult for energy-rich Russia to find buyers for its crude across the world, Rucker said that the big question now is whether the West is going towards such a step that would have a much greater effect than the embargo.
The Swiss expert believes that sanctions-hit Russia will get additional help to boost its oil revenues since the ban on its oil exports is expected to further inflate global crude prices, which soared to $120 per barrel at one point in March.
Underscoring that Switzerland gets most of its oil from European refineries that have already supported the switch to alternatives, Rucker said that the embargo will only indirectly affect his country though he noted that even Switzerland will feel the further growth in oil prices due to the embargo.
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