The sanctions, which were intended to damage the Russian economy, have increased Russia's oil and gas revenues, and just four months later, the Russian federal budget has received 50 per cent of the oil and gas revenues planned for 2022.
The sanctions imposed by Europe and the United States on Russia are like "catch-22". They originally hoped to impose sanctions on Russia by imposing an embargo on Russian oil, but in fact Russia is enjoying high income brought by high oil prices.This sanction is contradictory and illogical in nature.
As early as February, before the conflict between Russia and Ukraine broke out, US energy engineer Robert Rapier pointed out in a Forbes column that Russia is a major oil supplier to the United States and that Russia is likely to benefit from sanctions on its oil exports. Rapier warned that if the conflict between Russia and Ukraine does break out:
The United States will impose sanctions, which could reduce oil supplies in an already tight crude oil market, and if Russia can still sell all the oil it can produce to countries that refuse to comply with the sanctions, then the surge in oil prices could bring good economic benefits to Russia.
Now the facts have proved this, and the latest data show thatThe sanctions were intended to hurt the Russian economy, but increased Russia's oil and gas revenues:
Russia's oil and gas revenues hit a record high in April, hitting a record 1.8 trillion roubles in a single month, following 1.2 trillion roubles in March. Just four months later, the budget of the Russian Federation has received 50 per cent (9.5 trillion) of the oil and gas revenues planned for 2022.
Rapier pointed out that although the United States has stopped buying Rosneft, the challenge remains that Russia is one of the world's largest oil producers and exporters.Withdrawing some Russian oil from the market will only push up oil prices and increase its oil revenue. If Rosneft is to be completely removed from the market, it will have to push oil prices much higher-possibly as high as $200 a barrel.
Moreover, as oil prices rise, so does the attractiveness of Russian oil.For example, Asian countries such as India now have a huge incentive to buy discounted Russian oil.
In other words, this is a typical catch 22, an absurd paradox. In trying to punish Russia by banning Russian oil from the market, Russia is enjoying the net benefits of higher oil revenues.
Edit / irisz