The G7 countries are preparing a significant escalation of sanctions pressure on Russia’s oil sector to substantially reduce the financial inflows that support the Kremlin’s military economy. It is estimated that these measures could deprive the Russian Federation of approximately $80 billion per year, which would be a significant blow to its ability to finance aggression against Ukraine.
This is reported by Business • Media
Mechanisms of influence and challenges for the G7
However, experts emphasize that if other producing countries do not increase oil production in the global market, the reduction of Russian exports could have the opposite effect. In that case, a shortage could arise, leading to an increase in global oil prices, harming the economies of Western countries, and could even maintain or increase Moscow’s revenues, as higher prices might offset the loss of export volumes.
The G7 countries intend to “maximally increase pressure on oil exports from Russia.” This step could reduce Moscow’s revenues by $80 billion a year, delivering a serious blow to the Kremlin’s military economy.
For the effectiveness of the sanctions, the G7 should not only limit Russian exports but also persuade other major producers, particularly the Gulf states, to increase energy production. At the same time, it is important to focus on working with the largest buyers of Russian oil, primarily India, encouraging them to reduce imports from Russia.
PACE’s position: confiscation of oligarchs’ assets
An additional tool for pressure on Russia could be personal sanctions against Vladimir Putin’s inner circle. The Vice-President of the Parliamentary Assembly of the Council of Europe, Lord Don Touhig, has called for more decisive actions, including the confiscation of private assets of Russian oligarchs, so that these funds can be directed towards the reconstruction of Ukraine. He believes that sanctions should apply not only to state assets but also to personal assets, and that strong political will and the readiness of governments to take responsibility for such decisions are necessary for their implementation.