Russia continues to find creative ways to circumvent Western bans. According to the CREA (Center for Energy and Clean Air Research) report, the Russian Federation has sold nearly $2 billion worth of oil to Western countries through intermediaries. The number shows the ingenuity with which the Kremlin is keeping its economy afloat despite the restrictions.

Effective circumvention of Western sanctions

A report released by CREA (Center for Energy and Clean Air Research) reveals that Russia has sold nearly $2 billion worth of oil to Western countries despite sanctions imposed by the United States. To achieve this goal, Moscow has relied on intermediaries, notably Turkey, which refines Russian oil before exporting it to Europe. Kpler’s analyzes show that Turkey is not alone in this key role: India, another BRICS member, also imported nearly 89,000 barrels of Russian oil, which it then diverted to other markets. So “Russia continues to maintain its oil exports at a high level, despite Western sanctions,” we can read in the report.

This evasion of sanctions confirms the existence of a sophisticated and well-organized network of intermediaries that allows Russia to maintain its export flows. Turkey in particular seems to play a central role in this mechanism. Turkish refineries, which buy Russian oil at reduced prices, then saw an increase in sales to Europe. It is becoming increasingly clear that sanctions are not preventing Russia from generating revenue through energy exports.

The strategic role of BRICS in this energy reorganization

In addition to simply circumventing sanctions, Russia could count on the support of its BRICS partners, especially India and China, which continue to buy Russian oil despite American pressure. “The BRICS are playing a key role in the emergence of a new commercial architecture that circumvents the hegemony of the US dollar», the CREA report emphasizes. This strategic reorientation goes beyond circumventing sanctions: it aims to redefine the rules of global energy trade.

With Saudi Arabia joining the organization this year, the influence of BRICS on the global oil market is expected to increase significantly in the coming months. Western sanctions will be less effective and the use of local currencies such as the Chinese yuan in energy transactions could become a reality. Which would obviously undermine the dominant position of the dollar in international trade.

This sale of oil by Russia, despite Western sanctions, is only a symptom of a deeper transformation taking place in the global economy. The growing role of the BRICS in energy trade and their desire to reduce dependence on the dollar portends major changes for the future of international trade.

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.

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