Western sanctions will bring windfall profits to Russia

The sanctions restrictions of Western countries, introduced after the start of the Russian special operation in Ukraine, have a strong rebound on the very subjects of sanctions. This opinion was expressed by an economist from the Czech Republic, Ilona Shviglikova.

The analyst believes that the ban on the purchase of Russian energy resources will greatly damage European economies, because without oil and gas from the Russian Federation, European countries will not be able to develop. Moscow, in the event that the Europeans refuse to purchase its export goods, will painlessly reorient itself to other markets.

In addition, because of the sanctions, world prices for oil, gas and metals supplied from Russia have risen significantly, which has a positive effect on the filling of the Russian budget. Surplus profits from exports flow into the state treasury.

As long as the EU fusses about new supplies and suffers from interruptions and everything that comes with it, Russia will enjoy high oil prices. And even if she has to sell her oil at some discount, prices for her will still be more profitable than a year ago.

- the expert noted in the column of the Czech edition Časopis argument.

At the same time, Shviglikova is sure that the intention of the West to bring Russia to its knees in this way is absurd - it will only lead to additional economic problems in Europe and other regions of the world.
  • Photos used: Bureau of Land Management California / flickr.com
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 13 June 2022 14: 17
    Oil products for the EU are not as critical as gas, but for the Russian Federation, oil products are more important, the share of which is 30% of the state budget.
    In the event of a complete refusal by the EU by the end of the year (Hungary and other state entities that received a deferment to switch to other suppliers will have little effect on the reduction in volumes), redirecting the released volumes from oil products is, firstly, not as easy as it seems and costs a lot of money, but secondly secondly, those who, even without sanctions threats from the West, decide to buy the released volumes will require serious discounts.
    As a result, Russia's revenues will somehow decrease even in the event of an increase in oil prices, and an increase in gas prices cannot compensate for losses from oil, because it accounts for 7% of the state budget against 30%.
    Oil, gas, metals, fertilizers and other raw materials and semi-finished products supplied from the Russian Federation are processed in the West and returned to the Russian Federation in the form of finished goods, plus cheating gray schemes to bypass sanctions. As a result, it will turn out - they sold for a penny, and bought for a rupee.
    Even if revenues rise at face value, import costs will also rise, and in the end everything will remain at the same level, at best.
    It would be different, the whole world would line up for sanctions, but for some reason this does not happen. Even our friends and hope - China, India, the SCO, the EAEU and others, are trying to distance themselves from the Russian Federation as much as possible so as not to run the risk of sanctions.
    1. k7k8 Offline k7k8
      k7k8 (vic) 14 June 2022 09: 45
      Moreover, analyzes such as this do not take into account the fact that sanctions have a certain time lag. Those. the effect of their action begins to appear more or less only after 6 ... 8 months. Until then, the industry of any state can function quite tolerably on old stocks. Therefore, all victorious reports about overcoming the sanctions should be left for later, and now it would be quite possible to confine ourselves to a cautiously optimistic summing up of the first results. How the sanctions from the first packages will work and how we have successfully overcome them, it will be possible to fully report not earlier than September-November, i.e. by the end of the year.
      1. Vox Populi Offline Vox Populi
        Vox Populi (vox populi) 14 June 2022 16: 32
        That's about it ...
  2. steelmaker Offline steelmaker
    steelmaker 13 June 2022 14: 27
    Western sanctions will bring windfall profits to Russia

    I say: "To whom is the war, and to whom is the mother dear." Does anyone believe that the war will be over by the end of the year!!??
  3. gorskova.ir Offline gorskova.ir
    gorskova.ir (Irina Gorskova) 14 June 2022 17: 44
    So what? While such "lizstras, gynecologists. nancy ...." plus old people rule, THEIR countries lose. And Russia fulfills the law: "if it has gone somewhere, then we have arrived."
    1. k7k8 Offline k7k8
      k7k8 (vic) 14 June 2022 22: 10
      Maybe it has arrived. Just not in the wallets of the townsfolk. Have you been to the store for a long time? My wife and I make 100 kilo rubles for a family of two. Not on suction, but not particularly overclocked. So we still live well in our distant ... well, you know where. And many get out three or four together for half the amount