Trump helped Putin: rising oil prices are financing Russia’s war - Sky News
The escalation of the conflict between the US and Iran has caused global oil prices to skyrocket. This provides Russia with additional income to finance its war against Ukraine.
According to Censor.NET, this was reported by Sky News.
Russia earns money from oil despite sanctions
The publication notes that in a short period of time, the situation for Russia has changed dramatically. Just two weeks ago, President Vladimir Putin complained about pressure from sanctions, but today the country is profiting from oil exports.
"Not only has the price of Urals crude oil risen, but the discount that Russia was forced to offer due to sanctions has been abolished, bringing the Kremlin and its campaign against Ukraine unexpected profits," the publication notes.
Income and price dynamics
According to the Center for Energy and Clean Air Research (CREA), Russia's oil revenues fell by 18% last year and continued to decline in January. However, the strikes on Iran changed the situation: in two weeks, revenues rose by 17%, and exports from northern ports increased by 24%.
Sky News cited the example of the Sierra Leone-flagged tanker Kousai, with a capacity of around 750,000 barrels:
"When the ship was loaded with crude oil in Ust-Luga on February 2, the cargo was worth about $40 million. Eight days later, as it passed Dover, its cargo was valued at $42 million, as Urals oil was selling for $56 per barrel—$13 cheaper than Brent."
On the ninth day of the war with Iran, the price of Urals exceeded $100 per barrel. When the tanker Kousai passed Sri Lanka on its way to India on March 9, its cargo was valued at $75 million, although closer to the port of Paradip, the value dropped to $65 million (≈$87 per barrel).
Geopolitical factors and benefits for the Kremlin
The author emphasizes that despite pressure from the West, India and China remain the main consumers of Russian oil. The US sanctions imposed on New Delhi in February hit Moscow hard, but last week the US granted India a 30-day waiver from the restrictions due to high demand for oil after the closure of the Strait of Hormuz.
In addition, due to the war in the Middle East, oil supplies from the Persian Gulf countries to China have been suspended, which has also pushed prices up.
"The rise in energy prices caused by the closure of the Strait of Hormuz increases the Kremlin's oil and gas revenues, helping to finance its military budget. Geopolitical turmoil and policy loopholes are giving Russia windfall profits just as sanctions are taking effect," explained Isaac Levy of CREA.
The publication concludes that the longer the conflict between the US and Iran continues, the more likely it is that Russia will only benefit from rising energy prices.
