Eva Antonenko
26 August 2022 09: 00
Headings: News Policy Economy

Despite sanctions: Russia earns more than $1 billion a month from trade with the United States

Many goods were not included in the sanctions lists, and some goods are supplied in circumvention of the sanctions.

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Despite sanctions: Russia earns more than $1 billion a month from trade with the United States

Although the countries of the West have officially imposed sanctions on Russia, the United States continues to receive Russian goods, bringing the Russian Federation billions of dollars in profits. About it пишет Associated Press.

U.S. President Joe Biden promised after the Russian invasion of Ukraine six months ago "hurt" and apply "crushing blow" Vladimir Putin through trade restrictions on commodities such as vodka, diamonds and gasoline.

But hundreds of other types of illegal goods worth billions of dollars from Russia continue to enter US ports. So, for example, on a ship that was heading from St. Petersburg to Baltimore, sheets of plywood, aluminum rods and radioactive materials were imported to the United States from the Russian Federation.

The Associated Press found that over 3600 games timber, metals, rubber and other goods have arrived at US ports from Russia since the start of the all-out war in Ukraine. This is much less than in 2021, when about 6 thousand such cargoes were delivered to the United States over the same period, but it’s still brings Russia about $1 billion in profit per month.

Russia exports the most to the US wool, metal, food, oil and gas, fertilizer, auto parts and other types of products.

Despite the sanctions: Russia earns more than $1 billion a month from trade with the United States - photo 1

The material notes that the ban on the import of certain goods will cause more harm to the US sectors that consume them than to Russia itself.

“When we impose sanctions, it can disrupt global trade. Therefore, our task is to think about which sanctions will have the greatest impact, as well as make world trade work.”, - said the head of the Office for the Coordination of Sanctions of the US State Department Jim O'Brien.

Experts emphasize that the global economy is so intertwined that sanctions should be limited to avoid higher prices in an already volatile market.

In addition, sanctions do not exist in a vacuum and lead to confusing trade chains that can confuse buyers. For example, due to such confusion, one of the American companies still supplies millions of dollars worth of metal to the Russian Federation for the manufacture of fighter jets that are used in the war in Ukraine.

With regard to timber imports, Russian birch forests produce such hard and durable timber that it is used to make most American wooden school furniture and most home floors.. Sea containers with Russian goods - cereals, weightlifting shoes, cryptocurrency mining equipment, and even pillows - arrive at US ports almost every day. Some items are legal and promoted by the Biden administrationsuch as, for example, fertilizers.

Currently banned products, such as Russian oil and gas, continued to flow into US ports long after the sanctions were announced due to "wind-down" periods allowing companies to honor existing contracts. Often this is due to the fact that the origin of products is difficult to establish. We have previously talked about how Russian oil bypasses the embargo and enters the US and EU markets.

Recall that, in addition to circumventing the sanctions, Russia neutralizes their consequences due to the extremely significant increase in energy prices and the beginning of the reorientation of its markets towards closer cooperation with India and China. It helped RF with a reduction in exports this year, increase profits from the sale of energy products by 38%, comparing with the previous year. However, there are industries in the Russian Federation that have been hit hard by the sanctions: these are the IT sector and the automotive industry.

Previously, we wrote that in Europe, gas costs more than 3300 dollars per thousand cubic meters, which is an absolute price recordand told where in Ukraine there is the most work and to whom employers are willing to pay UAH 100. salaries.

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