The US renewed sanctions on Russia and tightened the loop to stop its BRICS counterparts from procuring oil. India, China, and Brazil, among other countries, were forced to buy crude oil elsewhere. India’s State-run refiners signed deals with the US firms for oil procurement due to the sanctions.
The Sanctions on BRICS Nations Will Bring the US Closer to a Crisis
Petroleum refiner Rosneft’s CEO Igor Sechin warned that sanctions against BRICS will only bring trouble to the US economy. He warned that the economies of BRICS nations are growing while the US GDP is stalling. The aggressive sanctions will only backfire as angst against the West is growing.
BRICS members Russia and China, and also Iran, have seen sanctions from the US. “The continuation of the West’s aggressive sanctions policy toward both Russia and China will undoubtedly bring the next economic crisis in Western countries closer. Not all Western politicians understand the risks they are facing,” he said.
The BRICS alliance has faced the ire of US President Donald Trump since he took office in January. He has called the bloc “Anti-American” for initiating de-dollarization policies. He also warned them of higher tariffs if they continue sidelining the US dollar for trade.
Also Read: BRICS Splitting Global Finances Into Two: The West Is on Guard
“Local objectives are being set to strengthen sanctions in the energy sector, energy assets are being seized in international jurisdictions, and instead of the stated goals, energy consumers in Western countries are already in an increasingly dramatic situation,” he said. Despite this, the BRICS bloc would come out stronger as its economy is growing, he stressed.
“As of today, the global oil industry continues to face underinvestment. Exploration spending is decreasing particularly sharply. In part for this reason, the coefficient of organic reserve replacement among Western oil majors has amounted to only about 40% over the past five years,” he summed it up. BRICS controls over 42% of the overall global oil output and supply.