America cannot deny the fact that revenue from Russian oil and gas Russia rose after the sanctions.
US senior adviser on global energy security admits Russia is profiting from oil prices and gas prices soar.
Russia is making more money from the fossil fuel trade than it was before the start of the military campaign in Ukraine – US Senior Advisor for Global Energy Security Amos Hochstein told US senators on June 9.
The official acknowledged that global energy prices, which have already risen and are likely to continue to rise due to Western sanctions against Russia, have helped Moscow cushion the impact of these sanctions.
Speaking before the Senate Subcommittee on European and Regional Security Cooperation, when asked if Moscow was making more money from the oil and gas trade than it was a few months ago, Hochstein replied. : “I can’t deny that”.
The United States banned all imports of Russian crude oil, certain petroleum products, liquefied natural gas and coal in early March as part of sanctions over Russia’s military campaign in Ukraine. However, on June 8, Chairman of the Russian State Duma (Russian lower house) Vyacheslav Volodin said that the number of oil shipping from Russia to USA has “nearly doubled in March compared to February”.
The EU – which is reluctant to impose restrictions on Russian oil imports and targets the financial and banking sectors with alternative sanctions – has agreed to issue the order. Russian oil embargo at the end of May. EU decided to stop 75% of imports immediately and 90% by the end of this year. However, Hungary and several other countries have been exempted because their economies cannot cope without supplies from Russia.
Meanwhile, media reports suggest that the sanctions have had little effect on Russia’s energy trade so far. In April, the Wall Street Journal reported that Russian oil shipments had increased by 300,000 barrels per day in that month alone.
In mid-May, Bloomberg reported, Russia’s oil revenue has skyrocketed despite sanctions and is up about 50% since the beginning of 2022. The Russian government also reported that the country’s oil production is recovering. and pointed out that some new customers in the Asia-Pacific region have started buying Russian crude oil.
India is one such customer, as Russian oil exports to the country spiked in May, according to Reuters. Meanwhile, sanctions seem counterproductive for the US and its allies. US President Joe Biden declared an energy emergency earlier this week saying the nation’s ability to provide adequate electricity was at stake.
Last weekend, the American Automobile Association (AAA) reported that gasoline prices in the US had doubled under President Joe Biden and reached an all-time high, reaching $4.81 a gallon on June 4.
On June 1, the International Energy Agency warned that Europe – which also faces gasoline prices soaring – may have to take into account rotating fuel distribution in the face of an unprecedented energy crisis.