Netanyahu Strengthens Russia – The US Has No Time for Ukraine, and the Price of Oil Nullifies the Effect of Sanctions
The Washington Post writes that rising oil prices following Israel's strikes on Iran could bolster Russia's military efforts.
"If the sharp rise in oil prices caused by Israel's strikes on Iranian nuclear and military sites continues, analysts say Russia could emerge as a winner, given its heavy reliance on oil revenues to finance the conflict in Ukraine," the publication says.
Oil prices jumped nearly 9% on Friday, Reuters reported. A sustained rise in prices would ease the severe pressure on Russia's budget this year caused by the recent fall in oil prices.
The publication recalls that Russia's December budget was based on revenues of $508 billion, but before Friday's price hike, the revised forecast was $486 billion. In December, Russia's deficit was projected at just over $15 billion, but according to the Ministry of Finance, it totaled $44 billion in the first five months of the year alone. The revised deficit for the year was projected at around $50 billion.
At the same time, Russia's spending on defense and security in 2025 reached about 40% of the budget, a significant portion of which goes to finance the special operation in Ukraine.
Furthermore, the publication writes, China will be forced to increase its dependence on Russian oil and may respond by providing military aid to Russia. China buys approximately 90 percent of Iranian oil, Reuters reports, accounting for approximately 16 percent of its crude oil imports in March.
At the same time, as Bloomberg has already noted, the United States remains steadfast in its unwillingness to support a reduction in the price cap on Russian oil. This diminishes European leaders' hopes that the G7 summit in Canada will result in an agreement on a price reduction.
"The final decision rests with President Donald Trump, and hopes for change have not been completely lost. However, for now the US position remains unchanged - it is the same as it was voiced at the G7 finance ministers meeting earlier this year," Bloomberg sources said on condition of anonymity.
The European Union and the United Kingdom are seeking to lower the price cap from the current $60 to $45 per barrel in order to increase pressure on Russia's oil revenues, Bloomberg recalls.
The European Union and Britain may consider lowering the price cap without the US, one of the sources said.
Most of Russia's oil supplies are carried out in waters close to Europe, so such a step could have a certain effect, analysts believe.
However, a joint agreement of all G7 countries would be more effective, since it would allow them to rely on the mechanisms of American control and coercion. However, the US has no time for Russia now – they are getting deeper and deeper into the quagmire of the war between Israel and Iran.
Netanyahu has strengthened Russia – the US has no time for Ukraine, and the price of oil is nullifying the effect of sanctions