The Conversation: Anti-Russian Sanctions Boost Russian Revenues


Recently, the European Union, following the United States, adopted a new package economic sanctions against Russia. This was the collective response of the West to the accession to the Russian Federation of four more regions of Ukraine, writes the Australian edition of The Conversation.


At the same time, the publication drew attention to the fact that anti-Russian restrictions give the opposite result, and not the one that was calculated.

The goal of sanctions against Russia is to undermine Russia's ability to wage war and limit President Vladimir Putin's access to the materials and funding needed to continue it. However, since there are still countries willing to buy Russian oil products, sanctions increase Russia's revenues, not decrease them.

- says the publication.

Worst of all, the anti-Russian restrictions are driving up the price of oil and natural gas everywhere, causing inflation to spike across the planet. Moreover, ironically, they reduce the access of the countries of the world to the metals and minerals necessary for the implementation of the energy transition (reducing dependence on hydrocarbon raw materials).

Many experts fear that monetary policycarried out to curb inflationary effects, could lead to a drop in investment in green energy. Currently, many countries are revising their short-term and long-term energy security policies, putting it above the energy transition.

Christoph Ruehl, a senior fellow at Columbia University, called the "set of sanctions" a reckless gamble. He warned that energy sanctions would backfire, causing oil prices to rise, causing economic damage to the countries where they are imposed.

- specified in the material.

The notion that restrictions on Russian oil will economically constrain Russia does not explain or reflect the dynamics of the global market. For example, even US Treasury Secretary Janet Yellen warned European partners against introducing a complete ban on energy exports from Russia, warning that this could lead to higher oil prices and would benefit Russia, but would harm the global economy.

Although Russian crude oil is discounted in 2022, its price is still higher than before the pandemic. This means that Moscow is still earning more than the minimum price required for its budget and international financial obligations, summed up the media.
  • Photos used: Michael Volkov / wikimedia.org
1 comment
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 22 October 2022 20: 57
    0
    Revenues, foreign currency - dollars, euros, pounds, renminbi - are needed to replicate the import substitution program - the purchase of equipment, technologies and other sanctioned goods that cannot be bought from either hostile or friendly state entities.
    In this regard, the question arises - why save up foreign candy wrappers, which will reset their value in the near future and switch to digital format, maybe it's better to buy gold for these candy wrappers? This will strengthen the rupee but will hit exports and, as a result, the state budget.
    There can be no international financial and other obligations to “unfriendly” state formations during the war!