Despite the European Union\u2019s drastic measures to wind down imports of Russian oil, Moscow still has plenty of buyers \u2014 and at prices steep enough to keep government revenue high and its coffers flush.<\/p>\n
Before the war with Ukraine, Russia sold about half of its 7.85 million barrels a day of crude and refined oil to Europe. But with the war and the E.U.\u2019s vow to abruptly end its reliance on Russian oil and gas, the Kremlin has been benefiting from high world prices while looking for new customers and reorienting its export strategy toward Asia.<\/p>\n
The windfall shows how hard it is to punish a major oil and gas power such as Russia when so much of the world \u2014 especially developing countries \u2014 depends on fossil fuels.<\/p>\n
Even with \u201csevere oil production cuts\u201d expected this year, Russia\u2019s tax revenue \u201cwill increase significantly to more than $180 billion due to the spike in oil prices,\u201d according to Rystad Energy, an independent research firm advising investors. The figure is 45 percent higher than in 2021.<\/p>\n
Read it all<\/a>.<\/p>\n India buys Russian oil at >30% discount according to @washingtonpost<\/a>.<\/p>\n Will the US impose secondary sanctions on its most vital ally in the Indo-Pacific? <\/p>\n If not, does that encourage moral hazard for other regional stakeholders like China? https:\/\/t.co\/BVurjA4Sto<\/a><\/p>\n — Carlos Casanova (@carcasall) May 12, 2022<\/a><\/p><\/blockquote>\n \n