The world economy has suffered from sanctions against Russia. What the media say
The Western press is concerned about rising oil prices due to the new package of sanctions against Russia, as well as the expected shortage of energy resources in Europe after the termination of Russian gas transit through Ukraine. At the same time, Western companies continue to operate in Russia despite the sanctions. What the foreign media write about it - in Izvestia's digest.
Reurters: Goldman Sachs and JP Morgan gave forecasts on the price of oil
The US Treasury Department on Friday announced sweeping new sanctions against the Russian energy sector, including Gazprom Neft and Surgutneftegaz, to try to thwart Moscow in the Ukraine conflict. Goldman Sachs believes the sanctions will hit 25 percent of Russia's exports, mostly crude oil, and predicts Brent prices to rise to $70-85 a barrel in the short term.
Reurters
In all scenarios, the long-term impact of lower sanctioned supplies on prices is limited, as we assume OPEC+ stabilizes the market by tapping its large spare capacity and increasing production for a longer period than in our baseline scenario
JPMorgan Bank said Russia still has room to maneuver despite the sanctions, but will eventually have to acquire unauthorized tankers or offer crude at the Western-imposed price cap of $60 or lower in order to use Western insurance and fleets.
Bloomberg: oil hits four-month high due to new U.S. sanctions against Russia
Oil prices are rising amid new U.S. sanctions against Russia's energy industry that have sown confusion among key importers in Asia over the threat of supply cuts. Brent rose above $81 a barrel after jumping nearly 4 percent in the previous session.
Bloomberg
In China, independent refiners in Shandong held emergency meetings to vet and work on getting crude supplies when fines were announced, traders said. In India, refinery officials said they were preparing for major import disruptions that could last up to six months
Oil has rallied in recent weeks due to cold weather, declining U.S. inventories and speculation that officials of U.S. President-elect Donald Trump may tighten restrictions on supplies from Iran in coming months. The sanctions package from the outgoing U.S. administration threatens to cause further upheaval, potentially changing the market structure for OPEC+ as the alliance plans to start easing production curbs later this year. A jump in oil prices could be a problem for central banks, including the Federal Reserve (U.S. Central Bank. - Ed.), if it leads to tighter inflation.
Bloomberg: Europe threatens to trigger a global fight for natural gas
The loss of Russian pipeline gas supplies would spur demand for LNG and could squeeze poorer developing countries from Asia to South America out of the market. For the first time since the energy crisis was exacerbated by the conflict in Ukraine, Europe risks missing its gas storage targets for next winter.
Bloomberg
With fewer options to replenish reserves by next winter, Europe will need LNG supplies, pulling them away from Asia, where the world's biggest consumers are located. Depending on how demand shapes up, competition will drive prices above levels that countries like India, Bangladesh and Egypt can afford, and it will affect Germany's economic recovery
Price increases could be exacerbated if stocks in the Asia-Pacific region are also depleted, leading to competition for supply. Not all utilities and industries can find alternatives to gas: it has become a problem for Germany, whose manufacturing sector operates in a higher-cost environment, and energy security was a major issue in the country's snap election on Feb. 23. Energy shortages will also affect Brazil, which is struggling to make up for reduced hydroelectric generation following the drought, as well as Egypt and Argentina.
Newsweek: American companies continue to work with Russia despite sanctions
U.S. companies paid $1.2 billion in income taxes in Russia in 2023, according to data from B4Ukraine Group and the Kyiv School of Economics (KSE) Institute. This tax contribution makes the U.S. the largest payer of foreign income taxes to Russia. After February 24, 2022, companies around the world left the country, but many stayed. According to a study by the Yale School of Management's Chief Executive Leadership Institute (CELI), 123 major U.S. companies continue to do business with Russia.
Newsweek
U.S. companies' tax payments rose to $1.2 billion, up from the $915.7 million they collectively paid in 2021. This is despite a drop in total revenue from $50 billion in 2021 to $30.5 billion in 2023
Mark Temnitsky, a freelance research fellow at the Atlantic Council's Eurasian think tank, called on Congress to "impose tougher financial sanctions" on U.S. companies that remain in Russia, arguing that they "stimulate the Russian economy." Besides the U.S., Germany was the second largest source of corporate tax to the Kremlin in 2023, as companies paid $693 million in tax to Russia. Austria ranked third, where companies paid Moscow $579 million in income tax.
