When Europe prepares to join the US in hitting the Kremlin with tighter sanctions for war in Ukraine, there are many signs that Russia found a way to sustain its economy.Russian Sokol crude cargo from the far east has been sold out for next month, and some Chinese companies use local currencies to buy Russian coal in March. Gas flowing from Russia to Europe has, if any, increased since the invasion on February 24. Nothing is the subject of restrictions.
Bloomberg’s economy hopes Russia will get around $ 320 billion from energy exports this year, up more than a third of 2021. Rubel has rebounded to pre-war prices against the dollar.While Russian oil outlip decreases this month, its ability to keep energy flowing and increasing its currency is Western leaders who frustrated. These resilience also submitted President Vladimir Putin victory at home, even with the even more isolated and the Russian military pulled back from Ukrainian plots.
US warning to India this week opposes aligning too close to Moscow shows awareness of the limitations of sanctions in the world that have relied heavily on oil, gas and other commodities. Sanctions against Russia: Russia will produce around $ 320 billion from energy exports this year.”There is no doubt that financial sanctions and others have weakened the Russian economy,” Patrick Honohan, a senior at the Peterson Institute in Washington and the former European Central Bank policy maker, wrote in a blog post on Wednesday. “But sanctions fail to crip up the economy, as long as they do not interfere with the revenue stream of exports.”
The European Union ambassador met in Brussels on Thursday to approve the fifth round of sanctions, with a proposal to remove Russian coal as the first step in overcoming energy imports. The European Commission, EU executive, also aims to ban most Russian trucks and vessels into blocks, with the exception of agricultural products, humanitarian and energy assistance.
His steps were coordinated with the US and group seven, with the government gave a fresh boost to improve penalties against Putin after the discovery of the cruelty committed against civilians in the cities of Ukraine which was released from control. President Volodymyr Zelenskiy said in regular evening speeches that the new round of sanctions looked “spectacular,” but it was not enough. “It can’t be called commensurate with the crime that the world looks at Bucha,” he said.
Heading East
With Russia regressing for new attacks in East Ukraine, China prepares to receive the first commodity shipments of Moscow which is paid in the yuan because some Russian banks are cut off from the international financial system.Russian crude oil which usually ends on refineries in Europe or A.S. Being towards Asia, where buyers, especially in India, take advantage of steep discounts. Delivery from the Black Sea and Russian Baltic Sea Port from Primorsk and Ust-Luga began to go to India in March, following the previous cargo from the same terminal to China.
EU foreign ministers are likely to discuss imposing an oil embargo in Russia when they meet next week, Josep Borrell said, the head of the foreign policy of the block. Speaking in Brussels on Thursday, Borrell said that the prohibition of oil was not in the latest sanctions package, even though he expected the minister would overcome it on Monday, “and faster or later – it would happen.”
The supply of Russian natural gas, which is like oil has not been approved by the EU, continues to flow freely because Europe faces energy saving which encourages the government to think twice before taking any action that goes further.Italy, one of the largest buyers of Russian gas, said on Wednesday that it would support the ban if the block was put together behind the idea, a German movement among others contradicted.
Buying Gas
Europe relies on Russia for about 40% of the gas needs, with a third of supply traveling through pipes that cross Ukraine.When the war began, the price of leaps means cheaper for European utilities to order more Russian supplies in a long-term contract rather than buying it on the continental hub. As a result, European demand for Russian gas increased, helping exports managed by the Gazprom PJSC government to increase its daily sales to the main foreign market by 17% in March before.
Export income is what “Russian military engine needed” to continue the war against Ukraine, according to the Ukrainian Ministry of Foreign Affairs, chose Hungary for his willingness to accede Russia and pay energy in the ruble.However, it was not as if the Russian economy was not hurt. Foreign companies leave the country, and unemployment is set to more than double the first quarter. This of course exceeds 9% for the first time in more than a decade, according to some estimates.
Russian oil production fell at most in almost two years in early April because some buyers looked elsewhere, based on data from the CDU-Tek Ministry of Energy unit seen by Bloomberg.Revelation more atrocities tend to cause countries to harden their determination and move to cut energy imports even with the risk of their own economies, according to Elina Ribakova and Benjamin Hilgenstock, economists at the Institute of International Finance.”While the resistance of energy embargo remains substantial in many European countries, including but not limited to Germany, it is increasingly impossible that this position can be enforced longer must be more evidence of Russian war crimes,” they said.