Ukrainian economic experts assure that Russia continues to profit exceptionally from oil exports despite Western sanctions, warning that controls are only partially effective and calling for tougher measures against Moscow.
“Sanctions have hurt Russian oil exports, but not enough. We call on Ukraine’s allies to explore new strategies to deprive Russia of financial resources,” said experts from the Kyiv KSE Institute, members of the Yermak-McFaul group.
Russia earns $425 million a day (about 380 million euros) just from the export of crude oil, which plays a “fundamental role” in maintaining its macroeconomic stability, according to a report published this Friday on Twitter by an institute that analyzes the impact of international sanctions on the income of the aggressor country.
It will take a “more aggressive stance” to “limit Russian aggression” by reducing its international trade revenue.
Analysts say they have found “clear evidence of widespread violations of G7 and EU price ceilings.” [União Europeia]”, which limits the maximum amount for which members of the “sanctions coalition” can buy Russian oil at a price of $60 per barrel.
They also state that 97% of all crude oil exports from the “key” Pacific port of Kozmino between January and June 2023 were sold above this price, and 42% were sold involving companies from the G7 or EU countries.
In the first quarter of 2023 alone, potential violations affected up to 59 million barrels, or 16% of all Russian oil exports subject to the price ceiling.
“The application needs to be significantly strengthened,” the authors of the investigation, including the director of the institute, Natalya Shapoval, emphasize, arguing that this will require “urgent changes in the information available to the executive bodies.”
In addition to providing additional supporting documentation, consideration should also be given to imposing larger fines and conducting appropriate investigations against those who violate the oil price ceiling, KSE emphasizes.
Further, the authors propose to urgently reduce this ceiling from $60 to $45 per barrel in order to reduce Russia’s export earnings.
With the “very low” cost of producing Russian oil, between $10 and $15 per barrel, Russia will be able to continue to export enough oil, and lowering the top price will not reduce supply, the authors emphasize.
In addition, they insist, “more drastic measures” should be considered to prevent Russia from benefiting from exports of crude oil to “third countries” such as China, India, Turkey and the United Arab Emirates, from where countries that have joined the sanctions import refined products.
Among the measures proposed by analysts is the return of the “broad EU embargo” on crude oil, as well as its extension to refined products based on Russian oil in “third countries”.
Kiev’s concerns about the effectiveness of international sanctions against Russia are not limited to its oil exports, as hundreds of Western or Asian-made technological goods have been found in newly produced “drones” and other military equipment that Russia has used to attack Ukraine.
Author: Portuguese
Source: CM Jornal
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