Sanctions

against the Russian Federation are in effect, but it is important that they are strictly implemented by all countries and, accordingly, control over this process.

Russia is already losing money because of the introduced ceiling price for its oil, as well as the rejection of many refiners from its "black gold".

Economic expert Oleg Pendzyn told about this in an interview with TSN.ua.

"Everything is fine with the sanctions. I would say that the biggest problem with the sanctions is their consistent implementation by all countries. If the foreign trade turnover of the Russian Federation and India has grown 7 times over the past six months and if all the oil that European oil companies refused to take and now goes to India, China for processing, we must understand that the financial inflows in the form of petrodollars to the Russian budget do continue. If we can state today that gray imports have grown in the Russian Federation and in the countries that are located next to Russia, sharply the volume of purchases of durable goods and household appliances has increased, despite the fact that in countries such as Kazakhstan and Georgia, the total volume of purchases of these goods within service and trading centers has grown 10-15 times, then we must understand that there is simply countries,which help the Russian Federation circumvent these sanctions," the expert said.

Therefore, he noted that the issue is not in the sanctions themselves, but in their consistent implementation and control.

"And actually the actions that were taken before the end of 2022, they are aimed at this very seriously. A limit price for Russian oil of $60 per barrel has been introduced, which will no longer apply to European countries that have a 100% embargo, but to already apply to third countries, in particular India. This means that Europe is working out a mechanism to limit the price of Russian oil, and the second point worth mentioning is that today the real price of Brent oil is $84," the expert said.

Pendzin explains that before the start of the active phase of hostilities, the difference between the price of Brent oil and Russian Urals oil was 2-3 dollars, and today it is already 30 dollars.

"This is already the result of the refusal of many refiners from Russian oil and is the result of these sanctions. And why is this important? Because 35% of the revenues to the Russian budget are petrodollars, while part of these petrodollars refers to the sale of petroleum products by the Russian Federation. And if you look due to the fact that sanctions against oil entered into force on December 5, and on oil products from February 5, 2023, even according to the estimates of Russian economists, the deepest decline of the Russian economy is expected in March 2023," the expert summarized.

"Ceiling" of oil prices

The European Union and the "Big Seven" have agreed to limit Russian revenues by

introducing a "ceiling" of oil prices

at the level of $60 per barrel.

European brokers simply won't transport more expensive raw materials, and not only to third countries.

Therefore, from December 5, the oil embargo, the approval of which was so difficult in the summer, is in effect, that is, the European Union refuses Russian oil and stops buying it.

The marginal price for it was necessary so that Russia did not rush to earn thanks to third countries.

Earlier, the Kremlin warned that they would not sell oil to countries that would support the "ceiling" of prices.

Meanwhile, the "Group of Seven" and the EU will review it every two months so that the ceiling price corresponds to the current market situation.

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