President of Russia Vladimir Putin revenge on western countries. Revenge has been accomplished because the Western countries that are part of the G7 group have adopted a policy of limiting the price of oil imports.
Here are the facts:
1. Revenge of Putin
Putin retaliated by banning oil exports to G7 countries, including Australia and the European Union. The member countries of the G7 are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States (USA).
The ban on oil exports to the G7 countries was even signed with a Russian presidential decree. Quoting the BBC, on Wednesday (28/12/2022) in this decision the ban on oil exports to the G7 is valid for five months from 1 February to 1 July 2023.
2. Putin’s Revenge Scratch Thorns
The reason for the revenge event carried out by Putin is due to the policies issued by the G7 countries including the United States, the European Union, Japan and Australia.
The root of the problem is the price limit for oil imports set by these countries at $60 a barrel. This policy is effective as of December 5, 2022.
The reason why the G7 countries impose the price cap is to hurt the Russian economy. Of course, in the end, to prevent Russia from using the oil revenues, it continues to attack Ukraine.
Putin was furious and eventually banned oil exports to the G7 countries.
3. Impact after Putin’s revenge
Russian Finance Minister Anton Siluanov said Putin’s oil export ban would squeeze the Russian economy. The huge impact on Russia’s revenues is that it threatens to run into an even deeper deficit
Russian Deputy Prime Minister Alexander said state revenues would be much higher than the previous forecast of a 2% deficit in 2023. Oil production was also said to decline by 5% to 7%.
In addition, the impact of Putin’s ban on oil exports is said to have a major impact on European countries, such as Germany, France, Italy and even the United Kingdom. The price of oil in a number of countries will rise.
Automatically the price of fuel oil (BBM) will also increase drastically, public transport costs and logistics costs will be more expensive.
“The impact on transportation is that fuel will go up, transportation costs will go up, logistics costs will go up, because in trade ships that use diesel have to use oil. The cost of public transport will go up, because fuel is critical” , said the executive director of the Institute for the Development of Economy and Finance (INDEF), Tauhid Ahmad to detik com.
