Gazprom Neft assessed the impact of the EU embargo on Russian oil

KHANTY-MANSIYSK, 31 Aug — PRIME. Europe’s refusal of Russian oil will not significantly affect either the market as a whole or Gazprom Neft in particular, Vadim Yakovlev, the company’s deputy head, believes.

“As for the impact of the embargo, the restrictions being created – regulatory, logistics – do not directly affect the overall volume of demand, but lead to the restructuring of logistics routes, because we are moving to new markets, ousting from there those manufacturers that supplied these markets earlier. Directly on the volume of demand and the volume of our production is not affected by the development of the situation,” Yakovlev commented to reporters on the upcoming EU ban on Russian oil supplies.

In his opinion, in general, the demand and supply for oil in the world remain the same. “I do not expect that the embargo will have a significant impact on the volume of supply and demand,” added a top manager of Gazprom Neft.

The coronavirus pandemic has shown that Gazprom Neft is able to quickly reduce and restore production, he said. “When we got into a situation of responding to a sharp decline in demand, I’m talking about COVID, we and the industry showed that we can quickly reduce production levels if necessary and recover. By the way, we have already reached production levels higher than pre-Covid,” said Yakovlev.