Both countries have greatly reduced their oil revenues since the sanctions were imposed. Moreover, investments are leaving Russia in bulk.
Russia will suffer more from Western sanctions than Iran and Venezuela have previously experienced from similar sanctions. This prediction by economists tops Wednesday, July 6, Business Insider.
For example, Takahide Kiuchi, an economist at the Nomura Research Institute, recalled that both countries also had windfall revenues from oil, but after the sanctions were forced to significantly reduce production.
Russia’s oil industry is likely to suffer as foreign investment leaves the country in bulk due to its invasion of Ukraine.
At the same time, Russia could suffer more than Iran and Venezuela, because most of the sanctions against it are imposed by the United States, Kiuchi said. In addition, the UK has banned Russian oil imports, and EU countries have agreed to ban 90% of purchases until the end of the year.
It was found that oil production in Iran and Venezuela stopped after US sanctions. Therefore, in July 2015, Iran entered into a historic agreement with six world powers – the United States, Great Britain, China, France, Germany and Russia – to limit its nuclear program in exchange for easing sanctions, specifically on oil. Following the lifting of sanctions, Iran’s oil exports rose to 2 million barrels per day in 2016 and climbed to 2.8 million barrels in 2018.
In 2019, the US imposed sanctions on Venezuela in an attempt to remove socialist President Nicolás Maduro. And Venezuela’s exports fell to a 77-year low of 623,600 barrels per day in 2020.
Despite huge sales revenues, the Russian Ministry of Economy predicts that oil production will drop by 17% this year compared to 2021. The country exported 5 million barrels of crude oil a day last year, half in Europe, according to the International Energy Agency.
Recall, today it was reported that India and China have sharply increased the purchase of energy resources from the Russian Federation. During the three months of the war in Ukraine, Russia received an additional $ 13 billion in revenue from the two countries compared to the same period last year.
India buys Russia’s oil. Will it save RF
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.