Russia continues to find creative ways to circumvent Western bans. According to the CREA (Centre for Research on Energy and Clean Air) report, the Russian Federation has sold nearly USD 2 billion worth of oil to Western countries through intermediaries. This figure shows the ingenuity with which the Kremlin keeps its economy afloat despite the restrictions.
A report published by CREA (Centre for Research on Energy and Clean Air) reveals that Russia has sold nearly USD 2 billion worth of oil to Western countries despite the sanctions imposed by the United States. To achieve this, Moscow relied on intermediaries, notably Turkey, which refines Russian oil before exporting it to Europe. Analyses by Kpler shows that Turkey is not the only one playing this key role: India, another member of the BRICS, has also imported nearly 89,000 barrels of Russian oil, which it then redirected to other markets. Thus, “Russia continues to maintain its oil exports at high levels, despite Western sanctions,” can be read in the report.
This circumvention of sanctions confirms the existence of a sophisticated and well-organised 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, have subsequently seen their sales to Europe increase. It is becoming increasingly evident that sanctions are failing to prevent Russia from generating revenue through its energy exports.
Beyond the simple circumvention of sanctions, Russia has been able to count on the support of its BRICS partners, notably India and China, which continue to buy Russian oil despite American pressure. “The BRICS play a vital role in the emergence of a new trading architecture that circumvents the hegemony of the US dollar,” emphasises the CREA report. This strategic reorientation goes beyond the circumvention of sanctions: it aims to redefine the rules of global trade in energy.
With Saudi Arabia joining the organisation this year, the influence of the BRICS on the global oil market is expected to significantly increase in the coming months. Western sanctions will be further ineffective and the use of local currencies, such as the Chinese yuan, in energy transactions could become a reality. This would, evidently, shake the dominant position of the dollar in international trade.