U.S. President Donald Trump tries to end the war in Ukraine – not aiming Russia, but hitting the countries that buy Russian oil, writes CNN.
On top of that list? China and India, two most important world economies.
The United States could hit those countries with economic punishments, Trump said, if Russia did not agree to the peace within 50 days.
The largest markets
This could subdue not only the two largest Asian markets, but also the whole world, because India and China are fighting in stock and finding various sources of oil – to avoid potentially high US tariffs or other sanctions, CNN transmits.
Russia earned around 192 billion dollars last year from oil sales, according to the International Energy Agency.
The reduction of this could be an effective means – but also expensive, and not only for Moscow. Oil prices could increase globally if more than seven million Russian exported barrels of oil abruptly disappear.
Oil markets have not yet significantly responded to Trump threat, mainly due to uncertainty if the president of the United States and, if he will, how.
The Chinese Foreign Ministry spokesman told reporters that “coercion” would not end the conflict in Ukraine. India has not yet advertised.
But the use of high tariffs to prevent the countries from buying Russian oil would be a dull tool – and although it could significantly reduce Russian war financing – could also cause even greater chaos in the rest of the world.
After the invasion of the Russian President Vladimir Putin in Ukraine, the United States, the United Kingdom and the European Union introduced the prohibitions of imports and the restrictions on the prices of Russian oil.
However, Russian exporters quickly adapted, diverting the flow of huge stocks from the West to the East, where customers, especially in China and India, significantly increased the purchase of fuel with discount.
Three and a half years later, the war continues. Trump, who returned to the White House six months ago, is all frustrated with Putin’s obvious disinterested peace attitude.
The two-party law that would enable the Trump in the introduction of customs to countries that buy Russian energy or uranium with a 500-axis rate received in the swing in the Senate.
End war
The representatives who supported him were called the Law “Hammer” which Trump is needed to end the war.
On Monday, Trump announced his own plan, saying that the Secondary Tariffs would now explain to CNN that Trump thinks of secondary sanctions to other countries that buy Russian oil.
“These are secondary sanctions. These are sanctions to countries that purchase oil from Russia. So, it is not really a sanctioning Russia.
It is about tariffs for countries like India and China that purchase their oil. This will really dramatically affect Russian economy, “said Matt Whitaker, the American Ambassador to NATO, for CNN.
Secondary tariffs, for which experts say they could mean widely imposing customs in the country’s export, would be a relatively new tool that India and China could give strong financial incentives to stop buying Russian oil, if it seems inevitable. Both countries have already led separate trade negotiations with the United States to negotiate the reduction of other Trump’s levies.
“It is the strongest possible ticket, at least with an energy perspective, which Ukrainian Allies can play,” said Ben McWilliams, an associate for energy and climate policies in Brussels Think Tank Bruegel, about the targeting of Russian oil exports. “But the question arises – even after being implemented, how serious are now in terms of implementation?”
(Vijesti.ba)
