Russia’s invasion of Ukraine has had effects in all areas: political, geographical and, of course, economic.
To the difficulties regarding exports, from those countries, raw materials and food, what has impacted world production and food, add the sanctions that different Western countries, such as United States and United Kingdom, imposed on Russia for its campaign on Ukrainian soil.
And one of the most important sanctions, due to the relevance of oil, was the one that put Joe Biden, US president, to ban imports of Russian crude.
To supply this oil, a few weeks ago, there was talk that the United States could import it from Venezuela. And also, on that stage, appeared Colombia as a possible seller of the so-called ‘black gold’.
For now, it is known that the country plans to export a surplus of 40,000 barrels of crude oil to the US.
Sources from the Ministry of Mines and Energy explained to Portafolio that, in the last meeting held by presidents Iván Duque and Joe Biden, the subject was discussed, taking into account that currentlyColombia sells Washington 200,000 barrels of oil per day.
The Government’s intention is increase production to 80,000 barrels per day in a year, and sell 50% of that pumping to the US.
With this panorama, how would the sale of oil to the United States favor Colombia?
For Jesson Balaguera, executive director for Values AAA and professor at the EAN University, this situation can favor many economic sectors: impact the generation of employment, corporate growth, strengthening and recognition of the commercial value of the country.
“Oil is now the one that comes to put positive figures in a country that is struggling for economic recovery. The war between Russia and Ukraine has caused oil prices to rise significantly. For Colombia, in the short term, it is quite favorable since it can find buyers at quite competitive prices in the market and it is an opportunity especially for Ecopetrol, since its income projections probably exceed those expected from the market.”, explained the expert.
He also recalled that the Colombian oil industry has been, in recent years, the engine of the country’s economy: “Crude oil is the first export product, with 55.4% of total exports, and the main contributor to State finances”.
However, Balaguera insisted that it must be taken into account that the war in Ukraine will generate “the increase in the price of oil, in the medium and short term, will affect the prices of gasoline in the country and its derivatives”.
“If Colombia manages to export more barrels of oil to the United States, the country can present growth in the short term for Ecopetrol and in general for its economy and thus move forward“, hill.
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