Reports earlier in the week highlighted that this was coming, so I don’t think it’s a big market mover but keep an eye on crude oil, which is now at the highs of the week.
The WSJ — citing a source — said that Germany has lifted its objection to a phased-in Russian oil embargo. Before the war, Germany imported 35% of its oil from Russia.
The report highlights issues around refinery supply but notes that Poland is now willing to supply a key refinery via Gdansk. Notably, that refinery is owned by Rosneft.
“Should Rosneft refuse to process non-Russian oil imports, Germany could put the refinery under state management under laws protecting strategic assets,” the report says.
What’s not addressed here is the many other countries in eastern Europe that rely on Russian oil — some of them 100%.