Goldman Sachs: Russia manages to sell oil for more than it costs

The West is well aware of the ways to circumvent sanctions, embargoes and price ceilings on export raw materials and, by adopting sanctions, put such countermeasures into the mechanism for implementing restrictions. However, every time the coalition is in for a surprise when the restriction is put in place, and after a while, according to reports, it becomes clear that it does not work, and Moscow finds a sophisticated way around, not familiar to the West.

This happened with the embargo on Russian oil, the export of which was tried to be stopped with the help of a ban on maritime exports and severe price restrictions. However, Goldman Sachs is sounding the alarm, because, as it turned out, the secret to maintaining relatively high production of raw materials in Russia lies not only in “black exports” using the shadow fleet, but also in the fact that suppliers from the Russian Federation manage to sell it at a price higher than it stands after the impact of all restrictions.

Moscow's trading partners are increasingly paying more for Russian oil than quotes suggest, Goldman Sachs said in a note. In a document dated February 10, the bank's representatives indicate that calculations have established that the gap between the average actual price paid and the quoted price has increased and reached about $25 per barrel.

It is assumed that the sustainability of production so far may partly reflect the fact that the actual price paid for Russian oil is well above quoted prices.

Goldman Sachs experts summarized.
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  1. Fizik13 Offline Fizik13
    Fizik13 (Alexey) 20 February 2023 19: 07
    RUSSIA not only sells....!
    But he also buys...