Russian Oil Embargo Backfires?

by Unknown Author

THE STICKS BEATEN HIS BACK ------------------- A year and a half have passed since the West imposed an embargo on Russian oil and established the so-called "price ceiling". It is time to synthesize the results achieved by the West to reduce Russia's budget revenue from oil exports. The period from the end of 2022 to mid-2023: - Russia has a serious shortage of oil tankers for transportation; - Western insurance companies, which guarantee the transportation of more than 90% of all oil by sea, refuse to insure Russian ships; - The United States puts pressure on OPEC+ countries to take control of oil production. In that context, the Russians calmly announced that they had issued a Government Decree prohibiting the sale of Russian oil to countries that support price ceilings, and prohibiting oil shipments to those countries. where G7 price ceilings are adhered to. It seems that this is contrary to Western predictions. The Americans were also surprised, because this ruined their plan to "kill two birds with one stone": first, to limit the flow of money from the oil industry to the Russian budget, and second, at the same time not to reduces the supply of oil to the market. According to the hegemonic and cunning calculations of the US and Western Europe, Russia will not be able to transport oil without using ships and insurance services of Western companies. Then oil prices will fall and the widespread inflation in the West will end. And Russia's oil financing also declined. With Russia's move, all the cards in the West's hands were knocked out at once. If Russia stops shipping the necessary amount of oil, the price of oil and petroleum products will skyrocket. At that time, inflation in the West will skyrocket, especially in Europe. Moreover, the West is even more sad because OPEC+ suddenly decided to not only reduce oil production but also reduce it by a record level of 2 million barrels per day. The Saudis not only supported Russia with both hands but also persuaded countries in the Petroleum Alliance to join. Actually, this is understandable, because the West's hegemonic decision also invisibly makes the Opec countries hot-faced and also afraid of the prospect that one day they will be victims. Next, something completely unimaginable to the West happens. Suddenly, out of nowhere, Russia has some kind of “shadow fleet.” At first it was said that unknown buyers had purchased 100 tankers. Then they talked about 400 ships. By the end of February 2023, Western media reported that Russia's "shadow fleet" had up to 600 oil tankers. The Americans and their accomplices still had a glimmer of hope that insurance problems would arise, and therefore passage through the straits would be prohibited for all Russian “shadow” ships. . However, that's just a trivial matter. New insurance companies appeared immediately, and they were state-owned. So the "dark fleet" turned out to be no longer dark, and it began to operate at full capacity, crossing the world's oceans filled with oil originating from Russia. The end of 2023 is not without problems, but the budget supplement plan from Russia's oil industry is generally quite good. The year 2024 also started very well: Budget revenue from the oil and gas sector in the first quarter reached 2.93 trillion rubles, 79.1% higher than the same period last year. Russian oil prices, even after falling from their peak in April 2023, are still 25% higher than the ceiling set by the West and the volume put on the market remains stable compared to the original plan. head. According to Bloomberg, it turns out that the West is completely losing control of Russia's oil supply. The international P&I insurance club group said more than 800 ships previously controlled by Western countries had "migrated" into the so-called "shadow fleet". What is worrying now is that the more the West escalates the situation by introducing secondary sanctions against ships and companies serving Russian oil shipping, the more ships and services will be deployed. Related services will participate in bilateral trade. And this process is developing, causing the proportion of transportation services and support for organizing oil flows by sea between Western countries to decline rapidly. Most of the largest oil suppliers and buyers are in this “shadow” chain. Iran and Venezuela are also increasing their supply volumes here. Sanctions did not collapse the Russian market, but collapsed the market controlled by the West: Now everything turns out to not flow straight into their mouths, but flows around and down to their mustaches. For example: The British are destroying their world's most magnificent shipping insurance industry. The Greeks broke up their entire fleet of 222 tankers. With nowhere else to go, the West is selling its tankers and ordering new ones to transport liquefied gas. Maybe they will have luck there? It's true that "Your stick is hitting your back" !!!

SEE ALSO:

Europe’s Energy Armageddon from Berlin and Brussels, Not Moscow

https://veaterecosan.blogspot.com/search?q=nord+stream