Once the Saudis destroyed the Soviet Union with a drop in oil prices. Today the EU wants to hit Russia with an oil embargo that will drive up the price. How is that supposed to succeed if Russia calculates completely differently?
Many a sanctions strategist will have wished for the 1980s these days. The world wasn’t easy back then either. But by complying with the US’s wishes, the Saudis undermined an entire empire. Here’s how it went: Even though oil prices were low, they began to multiply production from 1985 onwards. The price collapsed by more than two thirds. The effect: the Soviet economy, which was dependent on oil exports, collapsed. And the West had a low oil price.
This system no longer works that way. Saudi Arabia doesn’t play along. But because the West still wants to hit warring Russia with its main source of income, it has now also changed EU to a Embargo on Russian oil penetrated. The effect: the price of oil since the beginning of the year already increased by more than 50 percent, climbed further to $124 a barrel. And while thereby the Inflation boosted further and Europe is facing a fuel shortage, as Fatih Birol, head of the International Energy Agency (IEA), the magazine “Spiegel” said, for the time being, Russia can even happy about the oil price.
Paradoxically, Russia gets out better than the EU, like that in Moscow – also from Kremlin chief Vladimir Putin – has already been popularized with previous sanctions and is also being used in view of the current sanctions package?