Russian President Vladimir Putin chairs a meeting on the situation in the oil and gas sector. The photo was taken by Mikhail Klimentyev and Sputnik.
Russia is a major supplier of oil to the U.S. I warned if Russia invaded Ukraine when I wrote the article.
Russian sanctions could reduce the available oil supply in a tight market. Russia could still make money selling oil to countries that don't abide by the sanctions.
The data we have shows that the sanctions on Russia's oil are boosting the country's oil revenues.
Although the U.S. stopped buying Russian oil, the challenge remains that Russia is one of the largest global producers and exporters of oil. There is no way to completely remove Russian oil from the market without sending oil prices much higher.
As oil prices go up, it increases the appeal of Russia's oil. China and India have a lot of incentive to buy discounted Russian oil.
It is a classic catch-22. Russia is benefiting from higher oil revenues as a result of keeping its oil off the market.
That isn't to say that other sanctions aren't having the desired effect. Life is becoming more difficult in Russia due to the many sanctions that have been put in place.
Reducing global dependence on oil is the only way to impact Russia's oil revenues.
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