What would be the consequences of boycotting Russian oil?

Ukraine and Russia have been clashing for several years, but the Russians evaded Ukraine and declared war last February. So far, over 3670 people got killed, and this number is still growing (Statista, 2022). When Russia evaded Ukraine, it did not come as a surprise that many countries decided to support Ukraine. However, Russia is a significant exporter of oil that is also used in the Netherlands. But what would be the consequences if Europe decided to boycott Russian oil?

Short term

The consequences will not be too significant for most of Europe in the short term. Because of political instability, a barrel of oil already costs around 105 dollars. Another reason why it will not impact Europe too much on the short term is because most parts of Europe already had several suppliers of oil and can also buy from the African market. However, buying from the African market does bring the consequence that they’re experiencing shortages themselves now (Luttikhuis, 2022).

Eastern Europe

Even though most European countries won't struggle too much because of the boycott, eastern European countries like the Czech Republic, Slovakia and Hungary do heavily account on the oil. Furthermore, they also rely on the Russian diesel and could encounter issues with transporting to other parts of Europe. Because the countries are all set to import oil from Russia, it is difficult to import from other countries. Most of the refineries, for instance, can only handle Russian oil. Moreover, because the European Union is buying oil from Africa, they are coping with the shortage, too (Luttikhuis, 2022).

Gas

The problem for the western part of the European Union does not seem too big. Instead of a sudden stop, the member states are slowly cutting down the Russian oil. Russia could decide to close the oil line all at once, however. If the country did the same for gas, Europe would have a more significant issue as the west relies heavily on Russian gas, and alternatives are difficult to adapt to in the short term (Luttikhuis, 2022). According to Van den Beukel (2022), an energy analyzer at The Hague Centre for Strategic Studies, a positive side effect can be that the rising prices and insecurity in the gas and oil market could lead to a quicker energy transition in Europe which could benefit the environment tremendously.

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It is likely that the boycott's effect on the European Union, at least in the short term, will not be too significant. Are you thinking of (re)locating your business to the Netherlands? Moving your business can be challenging with local laws and regulations, cultural differences, and a language barrier. Also, the war's actual effect on the Netherlands could make it more challenging to settle. However, the Netherlands is a great place to conduct business, and with a great team of support, this can be possible in a great way. Q-Business Support could be your way to expansion. The experienced team consists of multilingual, highly skilled professionals dedicated to supporting you. They create solutions tailored to their clients' needs, enabling them to focus on what matters the most: their business' growth.