Ban On Russian Oil Imports Would Be A +$35 Billion Hit To Its Economy!

How hard would a ban on the purchase of its oil hit the Russian economy?

According to the latest UN Comtrade data:

• the combined effect of a US-EU import stop would remove over 48% of Russia’s trade value – worth $35 billion in 2020 – from oil exports.

The United States confirmed yesterday that there was “very active discussion” taking place with its European partners and allies about a potential import ban on Russian oil which was enough to spike the Brent barrel price to heights not seen since 2008 – peaking at $139 before settling around the $130 mark.

U.S. Secretary of State Blinken assured CNN reporters that any ban would be implemented “while making sure that there is still an appropriate supply of oil in world markets”. This, however, would potentially involve:

• reviving the 2015 nuclear deal with Iran and subsequently lifting sanctions on its oil exports…
• increasing of Saudi Arabian production or
• lifting of sanctions against Venezuela (an ally of Russia)…

[Graph below added by editor of munKNEE.com:]

The above version of the original post by Martin Armstrong (Statista.com) was edited [ ] and abridged (…) to provide you with a faster and easier read. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

Sponsor an article for $10; Receive a 258-page book as a thank you. Click here

Related Articles From the munKNEE Vault:

1. Which Trade Sanctions Would Hit the Russian Economy the Hardest?

2. Russia’s Economy & the Effect Of Sanctions On It

Russia’s invasion of Ukraine is an effort by a relatively small country trying to use military action and threats, backed up by a nuclear arsenal, that can in no way compare in terms of resources to those it is threatening and, as such, the combined impacts of the imposed sanctions on its small economy will likely be significant and widely felt.

3. Why SWIFT Matters To Russia

There are 862 individual SWIFT codes of Russian origin, belonging to somewhere around 300 financial institutions out of a total in the bank network of 11,000 and removing them from the network would prevent those banks from using the network to facilitate transfers.

4. Why Is Russia Stockpiling Gold?

What should we make of the fact that the Central Bank of Russia has been steadily amassing vast gold reserves since 2015?

5. Would Major Sanctions Against Russia Hasten End of USD As World’s Reserve Currency?

Russia is a huge supplier of oil and gas — traded in US dollars — which gives it both leverage over near-term energy flows and, far more ominous for the U.S., the ability to threaten the dollar’s reign as the world’s reserve currency – and it’s taking some big, active steps towards that goal.

6. Russian Economy Entering Into A Death Spiral – Here’s Why (+2K Views)

A prominent European think tank contends that the Russian economy may be entering into a death spiral, driven by a combination of factors, including low energy prices, government mismanagement, a collapse in the Russian ruble’s value and Western sanctions.

7. Russia’s Main Imports Being Adversely Affected

With more and more companies are cutting ties with Russia or suspending their operations in the country, here’s a look at the country’s imports.