President Vladimir Putin has expressed concerns over the unpredictable nature of the Middle East conflict, warning that its consequences could be long-lasting and far-reaching. The conflict is causing significant damage to global logistics, production, and supply chains, affecting various sectors including hydrocarbon extraction and processing, metal production, and fertilizer manufacturing. Putin's comments came during the 35th Congress of the Russian Union of Industrialists and Entrepreneurs, where he also condemned the "illegal sanctions" imposed on Russia, calling them unlawful and not endorsed by United Nations resolutions.
The conflict has created a surge in demand for Russian oil, earning the country over $750 million daily. According to a report by the Kyiv School of Economics, Russia's oil and gas revenues could double in March, reaching nearly $24 billion. Even if the war ends soon, Russia's oil and gas earnings could reach $218.5 billion in 2006, significantly higher than pre-conflict estimates.
The oil price hike has given Russia the means to fund its military operation in Ukraine, according to Kaja Kallas, Vice President of the European Commission. Kallas also called for an end to the Iran war, warning that its consequences are severe and will affect the world at large.
The Kremlin's lucrative oil sales are a direct result of the chaos in the Middle East, and it's high time world leaders held Russia accountable for its actions in Ukraine. The EU's Kaja Kallas is right to call for an end to the Iran war, but it's equally crucial to address the role of sanctions in fuelling the conflict. As Russia rakes in billions from oil sales, the world is left to grapple with the devastating consequences of war. The economic implications of this conflict are being felt far and wide, and it's imperative that world leaders work towards a lasting solution.
