By Timothy S. Snyder, Matador Economics
A story from Tsvetana Paraskova in Oilprice.com titled, “EU Imports of Russian Energy Exceed the Bloc’s Aid to Ukraine” asserts the EU and the world are tired of the Russia/Ukraine War, and the effects of the sanctions on Russian oil and natural gas are taking a toll.
According to this story, “during the third year of the Russian invasion of Ukraine, the European Union imported more fossil fuels from Russia than the financial aid it sent to Ukraine last year, the Centre for Research on Energy and Clean Air (CREA), a Finland-based research group said on Monday, on the third anniversary of the war.”
But, as a matter of reference, “Russian natural gas isn’t sanctioned, and neither is the oil flow via pipeline to landlocked EU member states in central Europe.” So, we either need to be serious about sanctions and rewrite the sanctions to eliminate the loopholes, or get off the high horse.
Otherwise, all of the discussions about Russia “busting sanctions” are mute, as the sanctions were obviously written to be broken! It is time to end this war, the needless killing of soldiers and the destruction of so much real estate and let the markets redistribute the energy market share in the EU.
More energy news
- We’ve all been watching for the point where drilling rig activity begins to grow again, and we might just have had that turn. Friday’s Baker Hughes Rig Count posted a net gain of four rigs with plus seven crude oil rigs, minus two natural-gas wells and minus one miscellaneous rig. Offshore rigs were unchanged for the week, and we expect to see these numbers begin to rise over the next several months. But, as the new Administration promises more drilling activity, along with a decrease in regulatory fees, etc. our E&P’s will get back to work drilling for oil & natural gas.
- As the Polar Vortex exits “stage right” temps will finally moderate and warmer weather will take charge. Heavy rains will head into the Northwest and push east, while fog sets up in the Ark-La-Tex.
More energy commentary is available at www.matadoreconomics.com
