As Russia continues to attack Ukraine with its full force, the rest of the world continues to watch, with some countries taking action. Like many wars throughout the world and in history, embargos serve as a popular tool of choice for allies in a war. In the Ukraine-Russia conflict, this is no different, with the EU posing oil embargos on Russia in which all 27 countries in the EU have agreed to ban shipments of Russian crude and refined fuels overnight. The strategy behind the embargo is best explained by European Council President Charles Michel, who explains: “We want to stop Russia’s war machine and cut the financing of Russia’s military capacity.”
An interesting detail about the embargo is that it’s actually the insurance component of the ban that packs the most punch. What this means is that there is also a ban on insuring European ships that carry Russian oil, making it much more difficult for Russia to transport their oil exports. With the degree these sanctions affect Russia negatively, they will also (unfortunately) affect oil prices positively, as in more expensive. I know it’s tough to hear so I’m hoping you have an EV car, if not, well I guess it’s something worth thinking about.
What do you think about the EU’s sanctions on Russia, and will they slow down Russia enough to make a difference?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.