The US and the EU have announced new sanctions against Russia

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Business FM on the consequences of the blocking US sanctions against Rosneft and LUKOIL:

"Blocking US sanctions is a bureaucratically rather cumbersome mechanism. Russian companies, as well as companies from many other countries, have long learned to circumvent its formal restrictions. A more complex, more sophisticated chain of participants is being created with the inclusion of several intermediaries, so that the importer and, in general, all foreign counterparties who fear secondary US sanctions do not interact directly with the sanctioned companies. This is not a free mechanism, that is, there are additional transactional logistical costs. As for the suspension of purchases of Russian oil by companies from India and China, oil is not supplied day-to-day, in this case it is necessary to withdraw Rosneft and Lukoil and their subsidiary from the direct supply chain. Suspending new contracts for a few days is not critical."