The Base Oil Scenario Following the Russian Invasion of Ukraine
The Russian invasion of Ukraine has caused major upheaval and supply chain problems throughout pan-European markets, predominantly in the energy sector. But there are larger and far more extensive consequences, some of which are apparent and others that are yet to surface.
The political and economic sanctions that allied nations have imposed on Russia have attempted to stem the tide of war. But some say sanctions haven’t done enough, as Vladimir Putin has used European dependence on Russian energy supplies as a potent weapon.
It remains a fact that the Russian economy is heavily dependent on revenues from hydrocarbon exports, with such EU markets as Germany and Italy being totally reliant on gas supplies from Russia.