………..As Economic Sanctions Kick In
There are indications that warring Russia may have started feeling the impact of global economic sanctions following Russia’s aggression against Ukraine.
Last night major international journals trended with news of the plea from Vladimir Putin for willing buyers of Russia’s oil and gas to step forward and do so at “any price point”
Washington Post quoted Russian Energy Minister Nikolai Shulginov as saying the country is ready to sell its oil and gas to certain nations at “any price point” as the Kremlin looks to prop up the main source of its revenue despite sweeping Western sanctions during the Ukraine war.
The energy minister said the offer applies to so-called “friendly countries” – meaning nations that haven’t imposed sanctions since the Kremlin began its brutal invasion of Ukraine.
Shulginov discussed the state of Russia’s energy sector in an interview with Kremlin-friendly newspaper Izvestia, according to Reuters. Russia has continued to reap massive profits from oil and gas sales despite mounting calls for an international boycott of all oil and gas imports from the country.
The energy minister said sale prices could range as wide as $80 to $150 per barrel. Shulginov noted the Kremlin was most concerned on keeping Russia’s oil industry operational during the conflict.
Pavel Zavalny, chair of the Russian State Duma’s committee on energy, previously identified China and Turkey as two nations the Kremlin still considered “friendly.” Meanwhile, India and China are among the countries still buying shipments.
The European Union’s heavy reliance on Russian gas has complicated the West’s efforts to squeeze the country’s economy. Russian President, Vladimir Putin, has demanded that unfriendly countries pay for oil and gas shipments in rubles.
Russian President Vladimir Putin is requiring western nations buying oil and gas from the country to pay for the shipments in rubles – a move widely seen as an attempt to prop up the sagging currency. Last month, Putin warned Russia would cut off shipments for countries that did not follow his ruble requirement.
Ukrainian officials have repeatedly called for a complete embargo on Russian energy – arguing the proceeds were being used to fund the war. So far, the European Union has denied to take that step, with wary officials citing fears of an energy crisis without shipments required to heat homes and maintain electricity.
Oil and gas exports account for approximately 40% of the Kremlin’s annual revenue – and Russia is poised for an even larger windfall this year.
The country will earn nearly $321 billion from its energy exports this year, according to Bloomberg. That figure is an increase of more than a third compared to the previous year.