The escalation of the conflict between the US and Iran has led to a sharp rise in world oil prices, which could bring significant additional revenues to Russia and help the Kremlin finance its war against Ukraine, writes Sky News.
Only two weeks ago, Vladimir Putin was experiencing significant pressure due to sanctions, but today he is actively profiting from oil.
Russia's oil revenues fell by 18% last year and continued to decline in January. This has put real pressure on the Russian economy, but the Iran war has changed the situation.
In the past two weeks, Russia’s revenues have increased by 17%, and exports from northern Russian ports have increased by 24%.
India and China were the largest consumers of Russian oil, but the US sanctions imposed on New Delhi in February have dealt a serious blow to Moscow. The situation began to change dramatically last week, when the US offered India a 30-day exemption from these restrictions due to the significant demand for oil due to the closure of the Strait of Hormuz. This only pushed prices up.
In addition, the war in the Middle East has stopped oil supplies from the Persian Gulf to China. Russia has also taken advantage of this, the article states.
In fact, geopolitical upheavals and policy loopholes provide Russia with a windfall precisely when the sanctions are working. The longer the conflict between the US and Iran continues, the more likely Russia is to win.