Russian oil companies earn extra $ 1 billion due to US sanctions
Sanctions against Iran and Venezuela increased demand for Russian oil.
The US sanctions against Iran and Venezuela increased Russian oil companies’ profit to $ 905 million in the period from November 2018 to July this year, Bloomberg reports.
JBC Energy analyst Konstanza Rangelova said it influenced OPEC +’s decision to reduce production, so the price for Urals Russian oil reached its maximum in comparison with Brent.
In particular, the demand for Urals increased in the Mediterranean region, where local companies used to buy oil from Iran.
After the sanctions were imposed, oil supplies from Iran fell dramatically. The United States introduced such measures after withdrawing from a nuclear agreement with Tehran. The White House spokeswoman Sarah Sanders said in late April that the goal of the Washington administration is to reduce Iranian exports to zero so that the ruling regime in the country does not have sources of income.
Venezuelan company PDVSA came under US sanctions in January this year. This happened after the opposition leader Juan Guaido proclaimed himself the president instead of Nicolas Maduro, and the United States recognized him as head of state.