Embargo on Russian oil could lead to closure of refineries, shortage of oil products in EU - Gazprom Neft CEO

ST. PETERSBURG. June 17 (Interfax) - European Union countries could face a shortage of oil products and some oil refineries in the region could close after the imposition of an embargo on Russian crude, Gazprom Neft CEO Alexander Dyukov said.

"If you look at European oil refining, many refineries are geared toward Russian Urals crude. Of course, this embargo will have consequences. How long it took to make the decision on the sixth package [of EU sanctions against Russia] is also an indication of this," Dyukov said in an interview with TV channel Rossiya24.

The oil that will replace Russian crude will cost more due to more complicated logistics, which will also affect prices for oil products, he said.

"A number of continental refineries [in Europe] are linked to Druzhba [oil pipeline]. It is necessary to solve the problems of shipping oil there, building a tank farm, developing primary refining that is suited to the new blends. Right now oil refining in Europe has a high margin, but if you look at its efficiency and profitability for investors and owners, it was low. Any inefficiency could lead to the closure of refineries, which will lead to a shortage of oil products," Dyukov said.