sanctions one stop russia. i am told me. alrighty. well, myself and the team, thanks for watching the can you see what old car tires have to do with you production? here's a hands on so really indeed the snow on youtube. you cran says it's in danger of losing the war and russia is more confident a victory than ever. and here's one of the biggest reasons. oil russians most important and most enjoying weapons. the country wrecked in at least

$280000000000.00 us dollars for more than 2022. and that's why western leaders made a demand target of their selections against moscow. the oil price cost is the west most important sanction. it was designed to keep russian oil flow into the global market, was also limiting the amount of money the kremlin could make from it. for a while has worked not anymore when the price comp was introduced to the 2 year impact on the price of russia golf for its oil. for almost 6 months now, russian oil has been sold on global markets well above the price compet $60.00 us dollars. 3 and which g 7 states cut off access to their services. for the 1st 2023, we can really suffer from full price. can now see, hey, turns out to circumvented. in this episode, we look at how russia rejuvenated its own revenues. and we'll consider what options ukraine on its allies have to hit back. there is a kind of

a sense of which you see and make some adjustments to the same. you know, to make sure that extra onrush those things as the war drives on questions are being asked of how long both sides can fall into the fights. threat david silver hair, long western support for ukraine with last and russia is ramping of ministry spending . the huge increase in budgets pending for more next year. they're talking about going from 4 percent of the to 6 percent. that to the basis of all this as a law, how long i should be staying this war. unfortunately for an extended period. welcome to business beyond. let's go back a little bit after the full scale russian invasion of ukraine in february 2022. the us that you and the other western powers introduced a range of sanctions, which mostly targeted russia's financial system. hundreds of billions of dollars worth of russian central bank reserves held abroad were frozen,

while the country was also excluded from the swift international payments system. these sanctions are designed to take a heavy toll on the kremlin interest and their ability to finance war. the russian economy, whether those better than many experts expected to, but this still had an effect. so imagine the world without some change. so these are no things we can have access to with the technology or the purpose technology could you can create what's going on with whoever you want. so if you think about this world, i guess the outcome of the war on the better feel, the new brain would have been very different. it's able to, of the you was slow to target russian gas and oil early on. mostly because its own economy was still reliant on the part of the reason the kremlin made so much money in 2022 late last year. the you finally took action on russian oil along

with countries from the g 7 and australia. that was with the introduction of something which we've mentioned already and which you're going to hear a lot more about in this episode. the price comp, the, if you decided that it was going to implement it's embargo on russian wasn't going in part of that. and margot was also. ready prohibition for your repeated service providers. i to participate in the state but actually boil. and this would be, for instance, shipping companies and maritime insurance companies for energy prices source through our 2022. and there were concerns that an embargo could push them up again, which would defeat the purpose of the sanction. out of this concern, the result is the concept of the price cap, which is a really a very complex intervention into the market. and the basic idea is that this

provision of the embargo that would have prohibited europe and companies from participating was rolled back as long as the oil was sold under a suit, the racial which was later set at $60.00 per barrel. the oil price comp ams to keep russian oil on the global market, but also aims to limit the price that can be sold for the companies from the e. u r. g 7. countries can provide services such as insurance for the transit of russian oil, but only if it is showing that the oil was traded for no more than 60 us dollars per barrel. well below average global oil prices. it wasn't unusual and somewhat daring intervention for in the 1st few months, it worked like a charm. the cap had an immediate impact on revenues. in the 1st 6 months of 2023, russian took in 47 percent less an oil revenues than it did in the 1st 6 months of

2022 and a half for the loan. revenues were 67 percent down year on year. broadly speaking, the energy stations where she had the desired and we know that russian or remain on the market prices did not rise until at. ready least at the old us production cuts later in the year and rushing export earnings. so sharp that they would think by about 30 percent a year to date and budget revenues from. ready oil decline bias, something between 35 and 40 percent. but even before the cap was introduced, russia was working on ways to get around as one of the main ways is through its so called shadow fleece. russians. ready to ship oil from on vessels that are essentially essentially spruce. so this is what is often talked about as the shows lead me to the question, what exactly constitutes a shadow of lead to that? so, but essentially means russia's ability to use ships that are not boons by an

s. ready in the g 7 already do, and that is not insured by n, as in these jurisdictions. and then the price kept doesn't look like russia has a mazda fleece of hundreds of awesome aging tankers to move. it's always around the world without being subject to the con. the typically have complex ownership structures. many operate without a proper insurance on the use of various methods to avoid detection, including creating fake locations, signals. being able to sell or without abiding by the cap means russia is now getting close to averaged a little bit prizes per barrel rushes capacity to keep going doesn't mean that the western alliance doesn't have options. there's little doubt is that something needs to be done and on fast. and so it's past the percentage points of view to be more than does that. i mean, is she will spend with the little even more,

but it goes on because for example, eventually me the least, you'll be happy to go father. and that's, that's his preference. and so i think it finds in, in the mean the assumptions to reduce the amount of money if we can, can spend on the world is what needs to be done. there are things that need to be done to make sure there are pressure on russia is maintain, otherwise the country will already significantly more from its oil exports going forward. and it's also a problem with the credibility of the broader sanctions. first, the hoping commission has already agreed a new round of sanctions against russia, although the exact details have not been released. the commission confirmed the following to dw in a statement. president funder line said recently the new package would include new import and export bands, actions to type in the oil price cap, turf managers, and 3rd country companies which circumvent the sanctions. it's now up to the $27.00

e. u member states to agree unanimously to the proposals, but there's no clear timeline on when that may happen. to have been reports that the proposals include plans for denmark to be given the task of inspecting and potentially blocking tankers carrying russian or through the narrow danny straits. more than half of all russian seaborne oil exports cross the straits. it's believe the danish authorities with target ships operating with western insurance based on laws to do with environmental risk with russia and having to go on the same kind of western insurance. the other schemes we believe that these insurance companies are actually not financially equipped to pay out in the case of and he could logical disaster. it's a genuine risk given how well of some of the tankers, russia is using our but introducing this sanction code called russia's revenues. if

we require, for instance, a baltic sea coast with states if. ready require certain insurance standards, and it would also force russia to rely again on western maritime insurance companies. and this would mean that the original price cap system remains place for longer. then there's the question of enforcement. we mentioned at the station front earlier. that's where paperwork is falsified. just suggest ships are complying with sanctions. it's another area which needs to be tightened significantly. approaches revenues are to be restricted. last month, the us sanctions 3 and you a best shipping companies for exporting russian oil above the price comp. benjamin hillock and stock says the problem is ramping, current ways of dealing with us are nowhere near enough. it's very difficult for a forcing authorities to investigate and to determine if a violation actually took place here. and what we're thinking about here is original sales contracts,

banking transactions related to customs declarations that. ready while enforcing agencies to determine at what price actually this cargo was sold. right now, you only have this side of station which is essentially a one page document on which someone says. ready was sold at price capital or below, and um, something from that is uh, entirely in that or so there's russia itself and the various companies providing dodgy services to help evade the price comp. but what about sanctioning the likes of china or india who buy so much of the oil? we should remember that uh, nobody wants to be sanctioned by the us already. or is this very costly for anybody for once to work in the global mark? and so i think so the risk of coalition should the more of that, and i remember my skip was design has such a way that it's good for the buyer. so train these buyers and siri, it isn't in

b as interest to pay less for rush results that could potentially tell the rush or the fear of sanctions means they won't pay above the cap. but there are clear reasons why sanctions against india or china are on like you're doesn't want to sanction china, because you don't wants to play this role. the call because you ask, you have a bottom based on some consensus to be a best. so these are the train us doesn't run through such an engine because it is an important counter wait in the sand though, they've been us a chance. so we don't see union channels within less than a coalition to go this. in the, near the 2 years since prudence troops poured across ukraine's borders, the russian economy has been hit with a way of unprecedented sanctions. a times it's ministry campaign slandered. it's been written off,

but it's still going. a huge increase in the defense budget suggests putting still as serious means at his disposal, which put him in charge with this open lady price, i presume in charge. i think they will manage as little as economy is not in the ruins, which is not the case that isn't on the forecast for the 22 percent or 5 percent. there is no going to break the political that we should dispense with the notion that sanctions alone in in this. ready war because they mean that russia no longer finance will get some more expenditures. i think that's realistic . ultimately, we're also talking about a dictatorship and if you, if you prioritize prioritize, deducting this war. ready everything else, then you can shift expenditures given the limited battlefield progress for you, created recently on diet silver, continued western sup. busy pressures on to show that the sanctions state of matter

. i don't think any of these developments or measures taken by himself, determine rushes ability that is worth it just makes it increasingly more painful. and that's why we said to keep working on making sure that the that the energy thing, since we're seeing. ready remains effective. those who know russia and to invest, say that know, and then to financial hardship, will make him stop. the work is not going as they find, but i mean, i think i know that it's in their mind that they need to continue this war and he will continue the war until his last breath. a sobering sauce for those willing ukraine to succeed. but also a call to action, to keep targeting filters and rushes most powerful weapons, the,

the, the whenever you eat a banana, prepare and all of a condo, pour try on a new pair of jeans. you should know that these goods usually come from far away. who spend weeks on the road and dark containers transported by rail by truck, but mostly on the high seas, and a lot can happen on their way around the world. that's why shipping containers need to pass crash tests even better would be to avoid accidents with them altogether. also in this episode, how have containers revolutionized retail wire crew ships, climate killers, and kinda really be.