– Only 4 percent of the companies in our association. Russian oil market. Already in March, our members suffered a severe setback. This was reflected in a significant increase in the mineral tax, which is linked to the global price of domestic but crude oil and the ruble against the dollar, as well as delays in receiving money, Corsun says.
Nearly 90 percent, he said. Crude oil produced by small companies that are members of Assoneft goes to the Russian market. When commodity prices and currency turmoil began in March, most of these companies spent all of their income on taxes. In April, small companies stopped drilling because they had nothing to pay because oil sales were not taxed, but its production was taxed.
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Small companies do not have their own refineries as a big concern. Their function focuses only on the study and extraction of the raw material.
As soon as the first problems arose in oil exports, the big players, integrated vertically, began to direct their own oil to refineries, often refusing to accept supplies from independent, small suppliers. This put small businesses in a very bad position, revealing problems in accessing the domestic market, which was exacerbated by cash flow problems.
Korzun reports that the output of independent manufacturers will continue to decline, especially in the third and fourth quarters. Companies reduce costs as much as possible to meet their tax obligations. According to him, the authorities need to protect small oil producers, which contributes to the budget.
The United States, the United Kingdom and Australia have already banned oil from Russia. A few days ago, EU leaders also agreed on the details of the Sixth Sanctions embargo on oil imports. This includes crude oil and petroleum products supplied from Russia to member states, with a temporary exemption for piped oil.
The agreement provides for the deregulation of the Trushpa oil pipeline, but Russian exports will be reduced to 90 in six months as Poland and Germany decide to withdraw from supply by Russia by the end of this year. Percentage in the coming months. The Trushpa oil pipeline shutdown was a condition for agreeing to Hungary’s sanctions, arguing that Russian oil could not be dropped overnight.
Marine oil supplies to the EU have already been limited by EU targeted sanctions against Rosneft and Gazpromneft, which came into force on May 15. Will no longer affect the overall sector. According to the “Kommersant” report, Lugoil, which holds stakes in oil refineries in Romania, the Netherlands, Italy and Bulgaria, could be the main victim. By 2021, the company had processed about 20 million tons of crude oil into foreign refineries, more than 26 percent. Its total production in Russia.
By 2021, the Russian Federation exported about 105 million tons of oil to Europe, a third of which came through the Druzhba pipeline.
The introduction of the embargo will divert Russian oil companies’ supplies to Asia, but this could be problematic. Experts are concerned about the shortage of tankers, high logistics costs and the need to offer large discounts to attract new customers.
The EU ban on insuring tankers with Russian oil would also be a challenge. Companies and traders have to look for insurers in other countries because without insurance, shipping cannot enter the port. Therefore, Russian experts predict a further decline in oil production, especially at the end of the year.
Monica Borgovska
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