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Significance
Hungary, Slovakia, the Czech Republic and Bulgaria in May all secured derogations from adopting the EU-wide oil embargo on Russian oil, the main source of supply for refineries across Central and Southeast Europe that are configured to process Urals blend crude.
Impacts
Cheap Russian crude incentivises EU companies to import greater volumes before the embargo comes into effect at the end of 2022.
Central and Eastern European countries may serve as a backdoor for Russian oil exports to the EU in 2023.
Though oil, unlike gas, is a globally traded commodity, investment into transit infrastructure is needed in order to diversify supplies.
Keywords:
EUR,
Bosnia-Hercegovina,
Bulgaria,
Czech Republic,
Hungary,
Serbia,
Slovakia,
Germany,
Poland,
Russia,
Croatia,
Eastern Europe,
economy,
industry,
international relations,
politics,
energy,
sanctions,
Fossil fuels
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2022
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