Eni, the ban on oil purchases from Russia has only geopolitical implications

Rome – The Gas still flowing from Russia without interruption. But no more oil. After the United States and Britain, it was Italy’s turn: its government giant, the group where are youIt confirmed that it no longer wanted to sign new contracts for the purchase of crude oil and its derivatives. Encirclement maneuver around Moscow’s oil companies finds a new ally: The United Arab Emirates took a stand in favor of increasing crude oil production withinOPEC +Breaking the line of firmness that has so far been supported by Saudi Arabia and Russia themselves.

Thus, the energy emergency becomes increasingly geopolitical and economic. The decisions of the past few hours prove it. Among European companies, Eni has been the fastest to align the West’s bid to position Kremlin It will affect the most important revenue of the Union budget: exports hydrocarbons. Europe cannot do without gas, given that more than 40% of all supplies come from Russia. Prior to suspending purchases (and related payments). Unlike the case of petroleumcan be replaced more easily.

This explains the decision of Eni, which is associated with Gazprom – the main company under the control of the Kremlin – with long-term gas contracts (among other things they are in the process of being renegotiated). For oil, it is different, the suppliers can be multiple and not linked to “fixed” infrastructures such as gas pipelines, because crude oil is mostly transported by ships.

extortion gas

By Carlo Bonini (Editing Format), Giuliano Foschini and Luca Bagni. Multimedia Format Laura Berchy. Gedi visual production

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Thus the problem of substitution can be solved by increasing production by OPEC +. So far, the cartel of major producers extending to Russia has always refused to listen to the calls of the world’s major consultants to exceed 400,000 barrels per day in production increases, which decided more than a year ago to restore pre-existing levels. Strong agreement showing the first cracks since yesterday. It was the UAE that took sides in order to speed up extraction.

A move can lead to a twofold advantage. On the other hand, it can have a positive effect on oil prices, leading to lower prices. On the other hand, it will increase the availability of raw materials to replace the banned Russian quota. It is difficult to understand whether this could lead to a decrease in the revenues of Vladimir Putin’s government, because the Russians can also find alternative buyers, for example in Asia. But a lot will also depend on whether or not the Chinese government is willing to support Russia.

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