Since the invasion of Ukraine and the resulting sanctions that were put on Russia by Western nations, has done little at all to hurt Russia – instead causing chaos across the West and according to a report, the actions taken by Western countries are funding Russia’s war with Ukraine.
Commodities traders in Switzerland, Singapore and Dubai are snapping up cheap Russian oil and “despite a plethora of sanctions and boycotts, Russia has managed to export nearly a billion dollars’ worth of fossil fuels per day since its invasion of Ukraine,” according to the report from OilPrice.com.
From his very first day in office, President Joe Biden cut off oil and gas production in the United States, while oil is still very much in demand, and as a result, Russia has been able to take over and offer up a cheaper deal to other countries – like China.
All while America is caught short with depleting oil and gas supplies and now has to import from the US’s competition.
Since the day of the invasion, despite Western sanctions that were designed to “ruin” Russia’s economy, Russia has managed to bring almost $100 billion into its coffers.
Expensive oil and fuel prices in the West “have allowed Russian oil and gas revenues to climb even after the sanctions forced export volumes to dip,” OilPrice.com reports.
“Ultimately, there is no shortage of willing buyers lining up for cheap Russian Urals, nor is there a dearth of middlemen connecting them with Russian energy companies,” the site’s report continued.
“Lurking behind the scenes are Switzerland’s giant trading houses Vitol, Glencore and Gunvor as well as Singapore’s Trafigura, all of which have continued lifting large volumes of Russian crude and products, including diesel, amid wide-ranging Western Sanctions on Russia,” the report adds.
Natural News reported:
While Vitol officials have pledged to stop purchasing Russian oil by year’s end, that is still months away and that pledge could change depending on market conditions. And while Trafigura vowed to cease purchases of crude oil from Russia’s state-owned Rosneft by mid-May, the trader is still free to purchase Russian crude from other suppliers. And Glencore officials said they would not make any “new” trading deals with Moscow, but so far, the trader hasn’t had any issues maintaining current deals.
Demand for Russian oil has also increased in India and in the first three months of Russia’s invasion into Ukraine, India spent upwards of $5.1 billion on oil, gas and coal – purchased from Russia.
India has never been a big buyer of Russian crude despite having to import 80% of its needs. In a typical year, India imports just 2-5% of its crude from Russia, roughly the same proportion as the United States did before it announced a 100% ban on Russian energy commodities. Indeed, India imported only 12 million barrels of Russian crude in 2021, with the majority of its oil sourced from Iraq, Saudi Arabia, the United Arab Emirates, and Nigeria.
Samir N. Kapadia, head of trade at government relations consulting firm Vogel Group, told CNBC, “Today, the Government of India’s motivations are economic, not political. India will always look for a deal in their oil import strategy. It’s hard not to take a 20% discount on crude when you import 80-85% of your oil, particularly on the heels of the pandemic and global growth slowdown,” according to OilPrice.com.