Oil is one of the everyday things that you need day to day in life. But now it has suddenly become one of the commodities for leveraging over other countries. It all started after Russia started invading Ukraine. Big countries like the USA, the UK, and Europe came in support of Ukraine in terms of money, weapon, and other aid. But one cannot stop a war with guns or money. So the western countries put sanctions on Russia so that not a single country will buy oil from Russia. Russia is the second largest oil exporter in the world with 4,653,500 barrels per day. The main objective of these sanctions is to crumble Russia’s economy and isolate it from the world.
Russia’s Alliance with Asian countries
After the sanctions, many economists think Russia’s economy will be badly hit. Eventually, it turns opposite the country’s economy booming. Everyone was aware of India and Russia’s political relationship. India and China are the second and third-largest oil importers in the world. China has a 13.2% of the world’s oil imports. Meanwhile, India has 4,4% of the world’s oil imports. Russia has given the oil at a discounted price to India and China. Though the western countries gave a warning to India not to buy oil. But India’s External Affairs Minister S. Jaishankar’s firm stand regarding the matter wins the heart of all across the world. In the Russia crisis period, India imported up to $40 Billion from the country. This is the 10x times of trade that India used to do.
What did The Oil War cost Europe?
Since Europe countries import 40% of Russian Oil, they get into big trouble. After the sanctions, Russia produced less oil which causes a hike in oil prices not only in the UK but in many countries. As the prices get high and the shortage of oil in Europe causes the biggest inflation in their 40 years. At the moment Russia sells oil at high prices which helps in the economic growth of the country. Having no other options UK and other Europe countries buying oil from Russia. The Oil War not only help in Russia’s economy but also strengthen its currency against US Dollar.