Only one nation benefits from sanctions on Russia – minister

 

Russian Finance Minister Anton Siluanov © Sputnik / Dmitry Astakhov

Source: RT

The US has capitalized on the restrictions, selling LNG to Europe at lucrative prices, the Russian Finance Minister said

The sanctions the West has slapped on Russia over the Ukraine conflict are taking a heavy toll on the European economy, while the United States is the only actor profiting from the restrictions, Russian Finance Minister Anton Siluanov said on Saturday.

Speaking to Asharq News daily, the minister claimed that Western sanctions had helped the Americans achieve what they wanted, saying “their supplies of oil and gas to the European market have increased.”

Energy shipments from the US, however, have proved costly for Europeans, resulting in skyrocketing inflation and decreased competitive power for European businesses, Siluanov said.

According to the minister, both Western sanctions and the blasts that ruptured the Nord Stream 1 and 2 gas pipelines in late September “were orchestrated to provide Europe with more expensive liquefied [natural] gas from America.”

“America benefits, Europe loses,” he explained.

Moscow has called the sabotage a terrorist attack, claiming that the US stood to benefit the most from the explosions. While Washington has denied any involvement, Secretary of State Antony Blinken described the incident as a “tremendous opportunity” for Europe to wean itself off of Russian energy.

Siluanov went on to admit that sanctions have affected the Russian economy. “But they inflicted on the West no less, and perhaps even more pain,” he added, pointing to how sanctions rhetoric has now become routine.

The minister noted that the EU price cap on Russian oil “will certainly lead to price and market distortions,” reiterating Moscow’s position that it would not provide crude under contracts under Western-mandated restrictions.

Russian oil companies are rerouting their oil shipments from the West in other directions, the minister said. “We will be looking for new markets, looking for new logistics. It is possible that this would be more expensive,” he stated.

Earlier this month, the EU, G7 countries and Australia introduced a price limit on Russian seaborne oil, set at $60 per barrel. The measure also prohibits Western companies from providing insurance and other services to shipments of Russian crude, unless the cargo is purchased at or below the indicated price.

Following the move, Kremlin Press Secretary Dmitry Peskov warned that the restrictions would wreak havoc on global oil markets, while Russian President Vladimir Putin said that Moscow was not planning to sell oil to nations supporting the price cap.

Russia explains potential oil output cut

Moscow’s Finance Minister has said it may redirect supplies due to the EU price cap, even as costs rise

Russia will halt oil supplies to nations that impose a price cap on its crude exports, the country’s finance minister, Anton Siluanov, said on Sunday. He also admitted the possibility of cuts to production.

The minister said that Russia would seek new markets and logistics solutions even if they are more expensive.

“We won't sell oil under contracts that will specify price limits offered by Western countries. This is out of the question,” Siluanov said in an interview with Saudi media outlet Asharq News.

“How will this affect the economy, the country's budget, and the volume of production? Yes, we will have to limit production somewhere,” the minister added.

A $60 per barrel ceiling on Russian seaborne crude, imposed by the G7 and EU, came into force on December 5. That measure, along with a ban on EU imports of seaborne Russian flows, is aimed at slashing Moscow’s energy revenues. Russian oil cargoes that are traded above the threshold cannot access key services provided by Western companies, including insurance.

Siluanov characterized the decision to set a price ceiling for Russian seaborne oil as the “dictatorship of a consumer.” He also said that, in theory, the nations backing the step could introduce similar price caps for other producers as well, explaining that Russia could not agree to such policies.

The minister additionally pledged all of Russia's budgetary obligations would be fulfilled despite price restrictions, sanctions and price fluctuations across the world's markets.

His statements echo comments made by Deputy Prime Minister Aleksandr Novak on the price-capping issue earlier this week. Novak said that Moscow wouldn’t sell crude to countries that impose a price cap, and may respond to the measure by reducing oil production by 500,000-700,000 barrels a day in early 2023.

Russia is the world’s third largest oil producer and the curbs would equate to roughly 5-6% of the country’s daily output.

The idea of oil production cuts was first voiced by Russian President Vladimir Putin on December 9. The Russian leader stressed that no decisions on the issue had been made as of then.