West wants more Russian oil. Inflation makes it hard

• Russia oil exports bring in the same amount of money as they did before Ukraine invasion.
• Sanctions against nations like China and India would devastate already strained global markets.
• There are too many workarounds, and it distorts the market when it needs to perform well.

In order to eliminate a significant source of funding for the Kremlin, Europe and the United States have banned the purchase of Russian oil. However, the strategy to inflict suffering on President Vladimir Putin hasn’t succeeded in getting him to rethink his conflict in Ukraine.

Energy exports continue to bring in the same amount of money for Russia as they did before to its invasion in late February. Global inflation is also growing, which puts further political pressure on world leaders like French President Emmanuel Macron, British Prime Minister Boris Johnson, and US President Joe Biden.

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On Sunday, top economic leaders will convene in Germany for the G7 summit, where they will attempt to come to an agreement on the way forward. Unfortunately, there aren’t many viable solutions for oil.

Price limitations on Russian energy imports, centralised European Union procurement, insurance prohibitions on ships, and targeting nations who continue to purchase from Moscow are just a few of the proposed measures. All of them have drawbacks, and a few would raise prices even further, endangering public support for the West’s determination to sanction Putin.

According to Robert Johnston, an adjunct senior research scholar at the Columbia Center for Global Energy Policy, “there are tools available to go harder after Russia, but they come with considerable costs directly to consumers in the US and Europe.”

Sanctions against nations like China and India, which continue to buy significant amounts of Russian crude oil, would devastate already strained global markets. And although while U.S. Treasury Secretary Janet Yellen recently stated that a cap on the price of Russian oil is something the country wants to consider, the West might not find the solution it seeks in such a complicated process.

There are too many workarounds, and it distorts the market at a moment when it most definitely needs to perform well, according to Johnston.

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