Western Sanctions On Putin's Russia Increased Oil Exports To China, Created Europe Energy Crisis: Johns Hopkins Professor

Steve Hanke, Professor of Applied Economics at Johns Hopkins University, has expressed his skepticism about the impact of Western sanctions on Russian oil highlighting the fact that the country has increased its oil exports to China.

“Since the West started levying its ill-advised sanctions on #Russia, Moscow has begun to export much more oil to #China. With sanctions, there are always a thousand workarounds,” Hanke tweeted.

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It is noteworthy that the G7 had agreed to put a price cap of $60 per barrel on Russian crude oil. The policy will ban companies from shipping, insuring, or financing Russian oil unless it is sold below the price cap. However, Russia said that it "will not accept" the price cap set by the G7 and would further analyze the agreement.

China Consumption: Hanke cited a chart that showed increased oil consumption by China in 2022. “While Russia's trade with countries in the EU and America has shrunk, its exports to #China, #India, and #Turkey have boomed. Russia is even selling discounted oil to #Pakistan. As usual, sanctions DON’T WORK. There are a MILLION workarounds,” he said in another tweet.

The United States Brent Oil Fund BNO closed 2.52% lower on Wednesday while the Vanguard Energy Index Fund ETF VDE closed 0.28% lower.

Hanke also pointed out that Europe’s ill-advised sanctions on Vladimir Putin-led Russia have led to an energy crisis on the continent. 

“Skyrocketing energy costs are the biggest challenge facing European hotels. No surprise. Europe's ill-advised sanctions on #Russia have created a European energy crisis. There’s no such thing as a sanctions-free lunch,” Hanke tweeted.

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