• About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Tuesday, June 28, 2022
TFIPOST
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

    How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

    Wheat india

    India comes to the rescue of a famished Egypt

    There must be a law that should prohibit international observers from meddling in India’s judicial matters

    There must be a law that should prohibit international observers from meddling in India’s judicial matters

    SYL song

    SYL song removed from YouTube

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    PLI Scheme for Apparels is going to eliminate the Bangladeshi clothes from the market

    PLI Scheme for Apparels is going to eliminate the Bangladeshi clothes from the market

    NPAs

    Congress had given India the NPA cancer. PM Modi has cured it

    India and Russia have their International Transport Corridor Ready

    India and Russia have their International Transport Corridor Ready

    Adani growth

    Gautam Adani will soon leave Mukesh Ambani miles behind

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Tejas LCA

    Malaysia wants India’s Tejas LCA at any cost

    NSA Doval’s statement on ‘Agnipath’ scheme should be read by every idiot protesting it

    NSA Doval’s statement on ‘Agnipath’ scheme should be read by every idiot protesting it

    Agnipath is BJP’s private militia, courtesy of our genius opposition

    Agnipath is BJP’s private militia, courtesy of our genius opposition

    In the guise of joint drills, America is sending its troops to learn high-altitude warfare

    In the guise of joint drills, America is sending its troops to learn high-altitude warfare

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Kashmir and Aksai Chin are not the only scars left by Nehru

    Kashmir and Aksai Chin are not the only scars left by Nehru

    Biden administration is strengthening Pakistan with impunity in response to India’s support to Russia

    Biden administration is strengthening Pakistan with impunity in response to India’s support to Russia

    Tejas LCA

    Malaysia wants India’s Tejas LCA at any cost

    Tunisia’s new Constitution invalidates Islam

    Tunisia’s new Constitution invalidates Islam

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    copper weapons

    The excavations in Mainpuri’s Ganeshpur village illustrate Hindus’ sophisticated weaponry

    Gondya Ala Re – 125 Years of Chapekar Brothers’ Supreme Will

    Gondya Ala Re – 125 Years of Chapekar Brothers’ Supreme Will

    History

    Government shouldn’t have removed Mughal references from NCERT books, it should have published the truth

    Kalika Mata Mandir

    Pavagadh Shakti Peeth: How a mandir was redeveloped after shifting dargah built atop it

    • Culture
    • History
    • Indology
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Manmohan is overrated, Joe Biden is the real robot

    Manmohan is overrated, Joe Biden is the real robot

    Sanjay Dutt character

    Sanjay Dutt has played the most irritating and over-the-top characters in the last 5 years

    Item Number – The cancer that almost claimed the Indian film industry

    Item Number – The cancer that almost claimed the Indian film industry

    Karan Johar bollywood

    Karan Johar, forget about a comeback because you can’t

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
  • Premium
No Result
View All Result
TFIPOST
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

    How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

    Wheat india

    India comes to the rescue of a famished Egypt

    There must be a law that should prohibit international observers from meddling in India’s judicial matters

    There must be a law that should prohibit international observers from meddling in India’s judicial matters

    SYL song

    SYL song removed from YouTube

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    PLI Scheme for Apparels is going to eliminate the Bangladeshi clothes from the market

    PLI Scheme for Apparels is going to eliminate the Bangladeshi clothes from the market

    NPAs

    Congress had given India the NPA cancer. PM Modi has cured it

    India and Russia have their International Transport Corridor Ready

    India and Russia have their International Transport Corridor Ready

    Adani growth

    Gautam Adani will soon leave Mukesh Ambani miles behind

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Tejas LCA

    Malaysia wants India’s Tejas LCA at any cost

    NSA Doval’s statement on ‘Agnipath’ scheme should be read by every idiot protesting it

    NSA Doval’s statement on ‘Agnipath’ scheme should be read by every idiot protesting it

    Agnipath is BJP’s private militia, courtesy of our genius opposition

    Agnipath is BJP’s private militia, courtesy of our genius opposition

    In the guise of joint drills, America is sending its troops to learn high-altitude warfare

    In the guise of joint drills, America is sending its troops to learn high-altitude warfare

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Kashmir and Aksai Chin are not the only scars left by Nehru

    Kashmir and Aksai Chin are not the only scars left by Nehru

    Biden administration is strengthening Pakistan with impunity in response to India’s support to Russia

    Biden administration is strengthening Pakistan with impunity in response to India’s support to Russia

    Tejas LCA

    Malaysia wants India’s Tejas LCA at any cost

    Tunisia’s new Constitution invalidates Islam

    Tunisia’s new Constitution invalidates Islam

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • History
    • Indology
    copper weapons

    The excavations in Mainpuri’s Ganeshpur village illustrate Hindus’ sophisticated weaponry

    Gondya Ala Re – 125 Years of Chapekar Brothers’ Supreme Will

    Gondya Ala Re – 125 Years of Chapekar Brothers’ Supreme Will

    History

    Government shouldn’t have removed Mughal references from NCERT books, it should have published the truth

    Kalika Mata Mandir

    Pavagadh Shakti Peeth: How a mandir was redeveloped after shifting dargah built atop it

    • Culture
    • History
    • Indology
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    Manmohan is overrated, Joe Biden is the real robot

    Manmohan is overrated, Joe Biden is the real robot

    Sanjay Dutt character

    Sanjay Dutt has played the most irritating and over-the-top characters in the last 5 years

    Item Number – The cancer that almost claimed the Indian film industry

    Item Number – The cancer that almost claimed the Indian film industry

    Karan Johar bollywood

    Karan Johar, forget about a comeback because you can’t

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
  • Premium
No Result
View All Result
TFIPOST
No Result
View All Result

The Russian Oilonomics and how Putin outfoxed the Western Sanctions

TFIPOST News Desk
by TFIPOST News Desk
15 June 2022
in Geopolitics
0
Russian oil
806
VIEWS
Share on FacebookShare on Twitter

The US and the rest of the Western world seem to have sanctioned every possible Russian product entering the markets except Russian oil and natural gas due to Europe’s dependence on these supplies.

Read more: The haughty Arabs get a taste of their own medicine

Yet, a few Western buyers imposed voluntary bans on Russian oil. Again, they were hoping that this will destroy Russia’s oil and natural gas business. Yet, this has actually made Russia richer.

Russia makes windfall gains

In the first 100 days of the war, Russia’s revenues from fossil fuels, that is, oil, natural gas and coal have broken all records. The revenues are being driven by an artificial surge in prices and increasing export volumes.

As per a study by the Center for Research on Energy and Clean Air, Moscow is said to have earned a record 93 billion euros through sale of fossil fuels over this period. Two-thirds of this revenue reportedly came from oil exports.

Lauri Myllyvirta, an analyst at the Center said, “The current rate of revenue is unprecedented, because prices are unprecedented, and export volumes are close to their highest levels on record.”

Who is buying Russian oil?

First of all, let us find out who has stopped buying Russian oil. Australia, Britain, Canada and the United States have imposed outright bans on Russian oil supplies. However, these are bans and not sanctions. So, these countries have stopped buying Russia’s oil voluntarily without any implications for any third party that wants to buy such oil.

The US had carved out an exception for Russian oil and natural gas given EU’s dependence on these fossil fuels. Within Europe, some buyers are avoiding Russian oil due to fear of reputational damage or possible legal consequences.

Yet, the 27 EU members haven’t completely stopped buying Russian oil. Germany has opposed any such move due to fears of recession and Hungary too is opposing any bans. So, countries in Europe are buying Russian oil even at elevated global oil prices. This is a windfall of sorts for Russia which is making higher revenue by selling broadly the same amount of oil to Europe.

Next up are the Asian markets like India and China. Russia is offering steep discounts and low prices to these two huge economies. So, these two countries are purchasing more Russian oil than ever before.

Consider this, in the whole of 2021, India purchased some 16 million barrels of Russian oil. This formed a very share of India’s total oil imports as India traditionally sources most of its energy from the Gulf and the US. However, since late February, India is estimated to have bought at least 13 million barrels of Russian crude oil. Increasing oil prices and limited options have promoted India to move towards discounted Russian oil.

Read more: TFI’s prediction comes true, India close to clinching oil deal with Russia

China is a traditional purchaser of Russian oil. However, it is purchasing even more oil than it used to purchase earlier. China purchased 800,000 BPD of Russian oil in 2021. However, in May it is estimated to have purchased a near-record 1.1 million barrels of oil per day.

Who is gaining with these heightened purchases? Russia, of course.

Understanding Russian Oilonomics (Russia’s Oil Economics)

At the outset, it may seem that Russia is offloading its oil at heavy discounts. It might seem that due to a shortage of buyers, Russia is selling its oil at a loss. However, this is where Russian Oilonomics gets rather complicated.

In reality, oil prices are high not because of any real rise in oil extraction costs but due to a shortage of options. Four large economies have said that they won’t purchase any oil. So, they are putting more pressure on a limited oil market and artificially enhancing oil prices.

On top of it, Iranian and Venezuelan oil has been squeezed out of the markets already and there are very limited options left to source affordable oil. In between the war, the Biden administration too said that it was not ruling out export curbs to ease pump prices. Such announcements lead to speculation in the crude oil market and further elevated prices.

Russia is already getting a very good price for its oil from the seller’s perspective and it will make huge profits even after offering steep discounts to India and China. For Asian economies, discounted Russian oil is actually a great deal given the paucity of other options and a comparatively more affordable price.

India and China are purchasing sufficient oil to compensate for what Russia is losing out in Britain, Australia, the US and Canada. Also, Russia is getting a much better price for its product due to curbs imposed by the West in the first place. Russian oilonomics thus shows that Western curbs are actually making Russia richer.

ShareTweetSend
Previous Post

All you need to know about “Agnipath Scheme”

Next Post

Burger King, your wokeism made even the wokes puke!

TFIPOST News Desk

TFIPOST News Desk

India’s most loved Right-Wing blog

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Energy Drinks: A Classic case of inventing a problem to sell the solution

Energy Drinks: A Classic case of inventing a problem to sell the solution

27 June 2022
How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

How Mayawati ensured the defeat of SP candidate Dharmendra Yadav and victory of Nirahua

27 June 2022
Wheat india

India comes to the rescue of a famished Egypt

27 June 2022
Manmohan is overrated, Joe Biden is the real robot

Manmohan is overrated, Joe Biden is the real robot

27 June 2022

Popular This Week

Bollywood Thackeray
Politics

Why Bollywood is afraid of Devendra Fadnavis’ return to Maharashtra

by Apoorva Shukla
25 June 2022
Russian Oil
Geopolitics

This is how India is importing oil from Russia even when insurance companies have blocked Russia

by Abhishek Kumar Singh
24 June 2022
The Rouble-Rupee combo – An effective solution to the menace of petrodollar
Geopolitics

The Rouble-Rupee combo – An effective solution to the menace of petrodollar

by Abhishek Kumar Singh
24 June 2022
Why Shopping Mall culture is losing its sheen in India
Trending

Why Shopping Mall culture is losing its sheen in India

by Tanya Trivedi
20 June 2022
Parle G
Analysis

In a decade or two, Parle will be forced to stop producing Parle-G

by Abhishek Kumar Singh
25 June 2022

©2022 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
  • Premium
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2022 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost