Valdis Dombrovskis, the European Union's Economy Commissioner, stated in an interview that the sale of Russian diesel recently authorized by the United States is unlikely to affect the price of this commodity. These remarks came after the announcement of an agreement between the President of the United States and Vladimir Putin, the President of Russia, to supply large quantities of diesel to global markets.
Doubts About Diesel Supply
Dombrovskis emphasized: "If we look at the volumes of Russian diesel exports, these amounts are not significant in macroeconomic terms. Moreover, there are many doubts about Russia's ability to supply this volume of diesel, especially considering the quality standards of the United States." These remarks were made on the sidelines of the annual meeting of the International Monetary Fund and the World Bank in Bangkok.
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Financial Support for Ukraine and Economic Issues in Europe
He also referred to the EU's efforts to increase financial support for Ukraine this week, stating: "We are approaching our international partners to strengthen financial support." Dombrovskis addressed issues such as rising yields on government bonds in Europe and concerns about inflation caused by rising energy prices.
He added: "Regarding EU-China trade, we faced a trade deficit of about 360 billion euros last year, which is nearly one billion euros a day. This unbalanced and unstable relationship needs to be rebuilt."
The European Union also announced that it will limit imports of hybrid vehicles from China to 350,000 units per year. This restriction will be implemented from 2027 for four years and will increase by 6 percent annually.
Dombrovskis also commented on the rising yields on government bonds in France, saying: "Paris must approve its proposed budget to avoid uncertain risks." He added that this increase in yield will not affect financial stability.
The European Commission will publish its autumn economic forecasts in the coming weeks, and Dombrovskis stated that it is likely to raise its inflation forecasts due to the Iran war, which has now reached its eighth month.
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