The White House aimed to destroy the Russian economy with oil sanctions in the wake of the Russia-Ukraine war.
However, Russia is now selling more oil and at higher prices, compared to its pre-war sales, despite facing Biden’s sanctions.
Biden Empowered Russia with His Weak Sanctions
President Biden’s strategy to deal with Russia failed miserably and further empowered Vladimir Putin.
As the Russian invasion of Ukraine disturbed the worldwide oil markets and sent the prices soaring, Russia is now amassing more money by selling expensive oil globally.
All the calculations of the Biden administration to bring Putin to his knees by imposing chronic sanctions have failed miserably.
This year, Russia is expected to earn $180 billion in oil revenues, which will be 45% higher than last year. On top of this, the total earnings of Russia from its energy sector will increase by nearly 33% in 2022 compared to 2021.
This means the country’s revenue due to the energy export will hit $321 billion this year, according to Bloomberg.
Russia’s revenues from fossil fuels, by far its biggest export, soared to records in the first 100 days of its war on Ukraine, driven by a windfall from oil sales amid surging prices, a new analysis shows.
— Bill Labovitz (@wlabovitz) June 13, 2022
Even though Europe started canceling Russian oil due to America’s pressure, Russia has refocused its oil selling strategy to find new clients in almost every region of the world, particularly Asia.
The European Union already indicated it is moving in an “orderly fashion” to end reliance on Russian oil by the end of the ongoing year.
Once this happens, Russia is likely to explore more opportunities globally to sell its oil in order to bag even more profit, despite being hit with US sanctions.
While China was expected to help Russian oil markets anyways, India also looked toward Putin for buying oil, despite being one of the most important strategic partners of the US in Asia.
Even though the Biden administration pressured India to condemn the Russian attacks, the South Asian country refrained from doing it.
Instead, India flooded big money towards Russia to buy oil by resisting the US pressure.
Biden Indirectly Helping Russia Fund War in Ukraine
Experts suggest the Biden administration delayed imposing chronic sanctions on Russia, which is one of the prominent reasons for Russia getting an edge.
Previous global conflicts indicated sanctions during earlier stages of the conflict are likely to be the most effective, but the Biden administration waited too long before putting any sanctions on Russia.
As the national US gas average jumps over $5 a gallon as the Biden administration is not having cordial relations with any important energy partner of the world, this price is expected to hit $7 a gallon soon.
The oil price, which stood at $92 a barrel just before the start of the Russian invasion, is now touching $122 a barrel, thus giving Russia more profit from its oil exports.
Russia’s oil revenues soared in spite of sanctions, reflecting windfall oil sales and surging gas prices.
So Big Oil inadvertently helps Russia in their greed for more more $.
— Everett (@OddswithGOP) June 14, 2022
Reportedly, Russia can use this profit to fund its aggressive ambitions in Ukraine for a long period of time, taking advantage of the soft-hearted foreign policy of the Biden administration.