Oleg Ustenko, the economic adviser to the President of Ukraine, says abandoning “Russia’s bloody oil is a top priority.” Ustenko believes that even if the countries abandon Russian oil it will not necessarily lead to a rise in world oil prices even when the output does not increase significantly – which he states ‘are unlikely’.
Ustenko in an online interview for the South Korean media outlet MoneyS, which was also released on the President of Ukraine’s official website, said that “Putin earns $ 1 billion a day from oil alone.”
According to Ustenko, Russian crude oil exports have been growing steadily since the start of the war in Ukraine. He points out, Russia’s oil export touched a record high of 4.7 million barrels last month since the Covid-19 pandemic.
He told in the interview, “Putin earns $ 1 billion a day from oil alone. European countries have even increased imports of Russian oil.”
Giving an example, Ustenko pointed out that Germany now has the largest oil reserves in history and, according to the German Minister of Energy, will continue to import Russian oil.
He said that the President of Ukraine’s office conducted a simulation under the conditions that additional oil supply would not happen, “which is the worst scenario,” adding, “as a result, we realized that the hike in oil will become normal again, within a few weeks.”
The advisor to President Volodymyr Zelenskyy explains that some European nations are concerned that inflation could happen. Adding he said, however, the market will undergo a rapid correction, and prices will return to acceptable levels.
“The reason that I believe the oil price will fall is because additional crude oil will be supplied in the market, from Latin America and the Middle East,” Ustenko told in the interview.
He further explains that African countries and some countries in the Middle East have begun to prepare for increased production. As per him, it is possible that Iran and Venezuela will enter the world market with the supply of oil.
Thereby, Ustenko disproves the claims that with the introduction of the embargo on Russian oil, prices globally will begin to rise significantly.
Hence, Ustenko said, “abandoning Russia’s bloody oil is a top priority.”
But Ustenko also believes, at the same time, Russia will continue to offer oil at cheaper rates, even at half of the international price. And even if western countries cut imports significantly in the future, he states, Russian oil could be bought by India and China.
However, Ustenko also states that Russia has limited opportunities to supply its oil, as its tanker fleet is quite small.
And hence, he says, the world should not help Russia in transporting energy – it should impose sanctions on Russian ports and impose an embargo on the transportation of Russian oil.
Taking the moment, he thanked the United States for imposing an embargo on Russian oil and gas. Whereas, he also hopes for additional sanctions, including a secondary boycott of Russian energy.
Furthermore, Ustenko thanked Seoul for supporting Ukraine, because, as President Volodymyr Zelenskyy recently noted, the Republic of Korea sincerely feels the pain of Kyiv.
Finally, Ustenko called on the world to block the cash flow for Russian President Vladimir Putin and to stop importing bloody Russian oil and gas.
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