Biden's Advisor: I'm very familiar with this, it's helping Russia
October 24th news, U.S. former President Biden's energy advisor Hochstein warned that the new round of sanctions by the Trump administration against Russian oil companies may ultimately make Russia earn more.
Previously, the U.S. announced sanctions on two major Russian oil companies - Rosneft and Lukoil - and threatened secondary sanctions against companies that have business dealings with them.
On the surface, this is a strong stance against Moscow, but in reality, it may repeat the energy backlash effect from Biden's era - once oil prices are pushed up, Russia's losses will not only be offset, but it may even gain additional income.
Hochstein pointed out in an interview that such sanctions often ignore a basic fact: Russia is an important pivot in the world energy market, it can stabilize prices by cutting production, and maintain cash flow by exporting through alternative routes.
During the Biden administration, the United States and the European Union jointly promoted a price cap on Russian oil, which resulted in international oil prices rising nearly 30% within a few months, and Russian exports actually increased.
Now, Trump has chosen to repeat a similar strategy, just with a different packaging, claiming externally that it is weakening Russia's income, but internally it is betting that oil prices will not fluctuate significantly. The problem is that the market never follows the White House script.
Once the sanctions were announced, oil prices rose immediately, meaning that Russia earns several dollars more for each barrel of oil it exports, while American consumers have to pay more for gasoline and heating oil.
This policy self-cycling once again exposes the U.S.'s lack of ingenuity. Washington tries to replace negotiations with sanctions, but the reality is that the market does not listen to the U.S.
The reason why advisors from the Biden era are familiar with all this is because they have already seen the failed version.
Original: www.toutiao.com/article/1846934588466311/
Statement: This article represents the personal views of the author.