WHO Gains From Sanctions 2: Russia has a record surplus, the US a record deficit

Hit Russia with sanctions? Well, a way to make your wallet fill even more.

Let's make a comparison between the current accounts of Russia and the US, which are not sanctioned. Current items account for incoming cash flows linked to trade surpluses and monetary transfers

Russia first.

And now the USA

The obvious question is: who do sanctions hurt? Who is in the situation of NOT depending on the export of others, but of making the world dependent on their own? Maybe because it does not have a particularly advanced economy, but in the meantime this is the way things are.

A calculation by a German think tank found that Russian oil and gas revenues hit a record high in April, climbing to 1.8 trillion rubles in just one month, after 1.2 trillion in March, leading to the following incredible statistics "After only 4 months, the Russian federal budget has already received 50% of the expected oil and gas revenues for 2022 (9.5 trillion)". For this we must also thank the sanctions that have driven prices crazy.

Today, Bloomberg confirmed this extraordinary statistic and, citing the latest IEA report, writes that Russian oil revenues have increased by 50% this year "even though trade restrictions following the invasion of Ukraine have pushed many refineries to avoid its supplies ". Apparently the restrictions – which have pushed oil prices to their highest level in a decade and increased revenues for oil exporters – are exactly what Putin hoped to achieve.

Moscow earned about $ 20 billion a month in 2022 from combined crude oil and product sales amounting to about 8 million barrels a day, the Paris-based IEA said in its monthly market report.

As we have frequently documented, Russian shipments have continued to flow freely even as the European Union approaches an import ban and international oil majors such as Shell and TotalEnergies have pledged to cease purchasing. Countering these self-imposed sanctions, Asia has remained a grateful and interested customer, with China and India picking up unwanted cargoes in Europe and doing so at a huge discount to locate.

Not only that: the reduction in output from Russian refineries has put diesel fuel supplies across the world in crisis, further sending prices skyrocketing.

Despite all the disruptions, Moscow continued to benefit from a financial windfall compared to the first four months of 2021. Despite public EU censorship of the Kremlin's aggression, total oil export revenue increased by 50% this year. .

Of course, sanctions may hit Russia in the medium term by reducing its oil output. Meanwhile they are razing the West to the ground. they reduce it to a heap of industrial and financial rubble. Because before making a policy, its effects should be calculated, which they never do in Brussels.


Telegram
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now


Minds

The article WHO gains from sanctions 2: Russia has a record surplus, the USA a record deficit comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/chi-guadagna-dalle-sanzioni-2-la-russia-ha-un-surplus-record-gli-usa-un-deficit-record/ on Fri, 13 May 2022 19:44:40 +0000.