Temporary easing of US sanctions brought Russia over $2 billion in additional revenues - S&P Global
Kyiv • UNN
Temporary easing of US sanctions on Russian oil exports brought Moscow over $2 billion in additional revenues. The Trump administration decided not to extend the exception after the end of the war between Iran and the US.
The temporary easing of US sanctions on Russian oil exports allowed Moscow to gain over $2 billion in additional revenue in just a few months. At the same time, the administration of US President Donald Trump decided not to extend the relevant exception after the end of the war between Iran and the US and the resumption of oil supplies through the Strait of Hormuz, reports UNN citing S&P Global.
Details
The US allowed the license for the temporary easing of oil sanctions against Russia to expire on June 17. The day before, US President Donald Trump stated that Washington would soon be able to increase pressure on Moscow.
We will be able to do this because oil is coming back to the market
As the publication notes, after the start of the war between Iran and the US, the US Treasury granted three 30-day sanctions exceptions for Russian oil transported by sea. After each license expired, it was renewed a few days later.
According to S&P Global Commodities at Sea, Russian crude oil exports increased from 4.9 million barrels per day in February to 6 million barrels per day in May.
Senior Fellow at the Atlantic Council's Global Energy Center Olga Khakova stated that the temporary easing of sanctions and rising energy prices brought Russia over $2 billion in additional revenue.
In just a few months, Russia received over $2 billion in additional profits thanks to high energy prices and the actions of the licenses. These excess profits funded an unprecedented scale of drone and missile strikes on Ukraine in the spring
At the same time, she warned that even without extending the exceptions, Russia will continue to try to circumvent sanctions and redirect oil supplies to Asian buyers at significant discounts to retain some export revenue.
Furthermore, the leaders of the G7 countries during the summit in France agreed to increase sanctions pressure on the Russian war economy, particularly on the oil and gas sectors.