As Boggart Blog and our companion publication The Daily Stirrer were saying around a year ago, western sanctions on Russia as a reprisal for the invasion of Ukraine have harmed the sanctioning nations more than they have the target.
by Rodney Atkinson via TCW, 7 September 2023
SANCTIONS against Russia have proved to be a farce, with damaging blowback against European economies, continued (but never mentioned) Western energy imports from Russia, a big recovery in Russian GDP growth since early 2022 and a major Russian programme of import substitution aiming at long-term self-sufficiency in goods and services previously bought from the West.
In the first seven months of this year, Russia has been the second biggest supplier of liquefied natural gas (LNG) to EU countries:
While Russian oil is banned, fuels derived from Russian oil are flooding Europe. This is because Russian oil sales have boomed to China, India and Turkey, where it is turned into oil products which are exported to the West.
India’s oil imports from Russia peaked at 69million barrels in May, almost ten times more than in the same period in 2021. In turn India shipped 5.1million barrels of diesel fuel and 3.2million barrels of jet fuel to the EU in June, compared with 1.68m barrels and 0.51m barrels in June 2021.
Ukraine has called on the West to ban the supply of all refined oil products to G7 countries if they were produced using Russian oil but such a measure would risk serious economic costs on the industrial economies at a time of high inflation and a feared recession.
In addition to high sales to Europe, the NGO Global Witness found that China was a major buyer of Russian LNG. Overall imports by Europe have increased by 40 per cent compared with the same period in 2021, and the value of LNG imported between January and July was €5.29billion.
In a classic case of energy sanctions backfiring, Germany stopped Russian gas only to import massive amounts of fertilisers produced from that gas. Cheaper imports of Russian fertilisers have increased by 334 per cent. ... Continue reading >>>
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