US ending sanctions exemptions means a boost for Russia

RUSSIA / FSU POLITICS - In Brief 23 Apr 2019 by Alex Teddy
On April 22 the White House announced it was ending exemptions to its sanctions on Iran. Until now 8 countries have been able to buy Iranian oil without facing pushback from Washington. These included China, India, Turkey and others. The news led to a Brent crude price rise by 3.3.%. The RUR jumped. High oil prices mean economic sunshine for Russia. The US said the Saudis will pump more oil to keep the price down. Saudi is very keen to get US support against Iran. Even if the Saudis do as asked the renewed worry about oil supply will raise the price a little. China and India will likely continue buying Iranian oil. They need it and they are too big to be bullied. Trump is trying to end his trade war against China and Iran sanctions are throwing a spanner in the works.Turkey is Iran's neighbor and might also continue purchasing its oil. Turkey is already in Washington's bad books for buying S 400 anti-missiles systems from Russia. If the US tries to penalize the Turks this might even lead to them leaving NATO. Russia and Turkey have developed a very cordial relationship lately. Trump aims to prevent all Iranian oil exports. Other countries that had waivers such as Italy and Greece are likely going to stop buying Iranian oil completely. The US strategy might work.

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