Russia Is Making Even More Money on Energy under Sanctions Regime; Ukrainian Finance Minister: embargo would raise prices so high that Russia could still earn significant revenue from oil and gas sales elsewhere

Ukrainian Finance Minister Sergii Marchenko said a potential European embargo on Russian energy would significantly raise prices and thus increase Russia’s earnings, according to a Wall Street Journal report.

Marchenko said that an embargo would raise prices so high that Russia could still earn significant revenue from oil and gas sales elsewhere.

This is not an unforseen outcome; any systems thinker should be able to see how shortage in a product or good can increase profit. For example, amid chip shortage and the pandemic slowdown, car makers were producing less cars but they were selling what they were making at much higher prices, not only offsetting the lower production, but increasing profits.

Similarly, Russian profit from oil export increased and will continue to increase until the market adjust.

 Russia expects to earn 798.4 billion rubles ($9.6 billion) in additional revenue from energy sales in April due to high oil prices, the finance ministry said, as Moscow needs cash to finance its obligations while being cut off from its reserves.

In related news, Argentine Foreign Minister Santiago Cafiero talks about Western sanctions imposed on Russia, and says that his country does not consider them an effective way to solve the crisis in Ukraine.

Today, Saturday, Argentine Foreign Minister Santiago Cafiero stressed that his country does not consider the sanctions imposed on Russia an effective way to resolve the crisis in Ukraine.

He said that his country proposes a return to dialogue and calm, pointing out that imposing sanctions and siege is not a fruitful way to achieve peace, dialogue and diplomatic negotiations.

"For Argentina, the interests of Latin America are a priority, and there are now problems in the region that deserve attention," Cafiero noted.

He added, "It is true that the war in Europe has, to a certain extent, captured the public's attention, but the humanitarian crisis in Haiti is no less urgent, and it does not surface because the media does not focus on it."

Regarding preparations for the Ninth Summit of the Americas, which will be held in June in Los Angeles, Cafiero stressed "the need to discuss food security in the region," adding that the United States "cannot stand aside."

He believed that judging countries and imposing sanctions and embargoes "are not Argentina's style, and they never were, and it seems to us that these measures in the region have only led to more inequality and social backwardness."

"Buenos Aires will not support Russia's exclusion from all international organizations, including the G20, so that we do not believe that this contributes to resolving the crisis," said Gabriela Cerruti, a press spokeswoman for the President of Argentina.