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Post: Forbes: A division has ripened in the world due to the conflict with Russia


An oil rocker in the Almetyevsk region of the Republic of Tatarstan. archive photo

Economist Doshi: Most countries opposed sanctions for the sake of cooperation with Russia

MOSCOW, March 24 – RIA Novosti. In the context of Western sanctions against Russia, the world has been divided into two blocs – those who support the sanctions and those who oppose them, the second includes most countries of the world, with the exception of a number of Western countries and their allies. The opinion was expressed by oil and gas economist Tilak Doshi in article V. forbes.

“For actively developing countries such as Brazil, India, China or South Africa, it is equally important both to avoid Westernisation, which threatens Western hegemony in international financial institutions, and to maintain fruitful relations with profitable partners such as Russia.” The author of the article wrote.

EU flags at the European Central Bank's headquarters in Frankfurt, Germany

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Doshi said that although the role of the dollar as the international reserve currency will not change in the near future, the bifurcation process of the world economy has already begun. “We are now witnessing the emergence of commodity-based financial blocks in trade, investment, finance and lending. This will be facilitated by wider use alongside new financial institutions such as the BRICS New Development Bank and the Asian Infrastructure Investment Bank of China.” Moscow and Beijing are working to create an international reserve currency and an integrated interbank clearing system based on the BRICS basket of commodities against Western financial sanctions for regional energy trade other than the US dollar.

The economist also made some predictions about how the current situation in the energy market will affect the world. The author believes that Europe has lost cheap Russian gas forever, and therefore the EU will be doomed to deindustrialization and a significant decrease in living standards. According to him, the US will take advantage of this by selling its energy resources at a high price and making the EU its vassal. According to Doshi, it would also be beneficial for developing countries to seek cooperation with Russia and China.

Western oil sanctions against Russia came into effect on December 5, 2022: the European Union stopped accepting the transportation of Russian oil by sea, and the G7 countries, Australia and the EU imposed a price cap on oil at $ 60 per barrel during sea transportation. – Transport and insurance of more expensive oil is prohibited. In response, Russia banned it from supplying oil to foreigners from 1 February if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

Since February 5, fuel sanctions came into effect: the European Union banned the import of Russian petroleum products, while the EU and G7 countries set a ceiling price for them. The limit is set at US$100 per barrel for petroleum products originating in Russia, and US$45 per barrel for reference oil quality (diesel fuel) traded at a premium and traded at a discount (fuel oil).

Oil pumping seat in the Almetyevsk region of the Republic of Tatarstan - RIA Novosti, 1920, 05.02.2023

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Source: Ria

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