The United States recently announced a new set of sanctions against Russia.
The move sparked widespread concern and speculation. So why would the United States take this action against Russia?According to the Ministry of Finance, the reason for the new round of US sanctions against Russia is that Russia is carrying oil at a higher price than the Western limit.
Through these sanctions, the United States hopes to force Russia to lower its oil ** in order to launch economic sanctions against it. However, the G7's policy of capping prices on Russian oil exports has been widely seen as ineffective.
Russia threatens other countries that if they participate in the G7 price cap on Russian oil, then they will not be able to get oil from Russia. As a result, these countries have to find other ways to get the oil they need, often at higher costs.
On the other hand, OPEC countries maintain close cooperative relations with Russia and jointly maintain high international oil prices. Oil ** remained stable at the level of 70-90 dollars, which made the United States lose control over the international oil market.
Although the United States and the European Union have been trying to limit Russian oil exports through sanctions, their actions will only increase the cost of Russian oil exports, but not really restrict Russian exports. On the contrary, Western countries still import Russian ** or petroleum products through third-party channels, making the high international oil prices an international joke.
Therefore, the sanctions imposed by Western countries on Russia are not only ineffective, but also allow Russia to make more profits in the oil market.
In addition, Russia has decided in recent years to significantly increase military spending, making it a third of the state budget.
Russia's defense budget is expected to increase by 68% by 2024 compared to 2023. This initiative has attracted wide attention from the international community.
Russia's current strategy is to rely on a strong defensive line to fight in favor of defense. If the war fails to produce a meaningful offensive operational victory in 2024, it may be dominated by factors outside the battlefield.
In conclusion, the sanctions imposed on Russia by Western countries did not prevent Russia from profiting on the oil market, and also triggered a skyrocketing of Russian military spending. Despite attempts by Western countries to exert pressure by restricting Russian oil exports, these sanctions have not had the desired effect due to Russia's cooperation with OPEC countries and the presence of third-party channels.