Far-reaching sanctions are intended to prevent Russia from easily financing its war of aggression against Ukraine by selling energy. However, the aggressor still manages to export quite a bit of oil in roundabout ways.
The Russians are dealing with the sanctions very smartly, as data from the Federal Statistical Office in Germany shows. For example, Germany imports significant quantities of Russian crude oil, mainly via India, which is processed into diesel, for example. In the first seven months of this year alone, imports of petroleum products from India increased more than tenfold compared to the previous year.
The Western states have actually tried to create the most watertight package of sanctions against Russia as possible. In addition to the partial exclusion from the SWIFT payment system, the oil embargo limits the price of a barrel of crude oil to 60 dollars (56 euros) – this is intended to prevent Putin from generating additional revenue from the oil that does not flow into the country. Europe.
Price ceiling not watertight?
The oil price ceiling must be enforced through the West’s market power in the shipping companies and the insurance sector. But since then, the Russians have mainly sold to China and India – and have started to raise the price there.
Especially recently, Russia has probably become increasingly successful in getting oil onto the market without bypassing Western obstacles.
Cargo on board sold several times
How it works? Cargo ships from Russia are leaving in compliance with Western insurance sanctions and crude oil costing no more than $60 per barrel. But while the goods are still in transit, the deception begins – the freight is resold several times to different intermediaries – and each time the price rises. Then, when the ship reaches its destination, the price is significantly higher than when it started.
But the sting runs deep
The Kiev School of Economics has now calculated this difference for the “Frankfurter Allgemeine Zeitung”. While this was still around eleven dollars (10.50 euros) per barrel in January, this had already risen to 28 dollars (26.70 euros) in August, an increase of no less than 154 percent.
That may seem like a lot, but the oil price ceiling has so far proven to be an effective tool against the aggressor. As a working group of the Ukrainian Presidential Office recently found, oil and gas sanctions have since cost the Russians $140 billion to $170 billion (€133 billion to €162 billion).
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
