Russia is getting a big financial boost from U.S. sanctions on Iran and Venezuela


When the Trump administration slapped sanctions on Iran in November, European oil refiners turned to Venezuelan sour crude oil as a replacement — and after Trump announced sanctions on Venezuela to pressure President Nicolas Maduro out of office, "European refiners have been left competing to secure as much medium, sour Russian Urals as they can," Reuters reports. Trump's sanctions have removed at least 800,000 barrels a day from the market, and with OPEC simultaneously slashing the supply of sour crude oil, Russia is cashing in.
The U.S. is producing more oil than ever, but it is mostly light, sweet crude, so "it is not an alternative" for Europe, Reuters says. "Thanks to the higher premiums, Russia made an additional $140 million in March from seaborne and pipeline deliveries versus October prior to the sanctions coming into effect."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
How successful would Elon Musk's third party be?
Today's Big Question Musk has vowed to start a third party after falling out with Trump
-
Music reviews: Bruce Springsteen and Benson Boone
Feature "Tracks II: The Lost Albums" and "American Heart"
-
Why passkeys are the next frontier in digital security
The Explainer A disruptive new technology promises to put passwords to bed forever — but not yet
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Is the EU funding Russia more than Ukraine?
The Explainer EU remains largest importer of Russian fossil fuels despite sanctions aimed at crippling Kremlin's war effort
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs