The United States had sanctioned Russia for years, with the most recent round imposed during the Biden administration following Russia’s invasion of Ukraine. Those sanctions were designed to limit Moscow’s access to global markets and reduce the flow of money that could fund its military operations.
This week, however, the U.S. lifted some of those sanctions, allowing Russia to sell a portion of its oil to the United States. The move comes amid the war involving Iran and the resulting disruption of global energy supplies, which has put pressure on energy markets and raised concerns about availability and price stability.
What does that mean in practical terms?
It means Russia will have more petrodollars flowing into its economy. And with more revenue comes greater financial flexibility, money that can potentially be directed toward its ongoing military operations in Ukraine.
There’s another layer to consider. Iran is an ally of Russia. When allies are under pressure, they often support one another. So if Iran is being subdued or constrained by conflict, it is reasonable to assume that Russia could use some of its newly generated petrodollar revenue to help support Iran in various ways.
Now you begin to see the broader geopolitical picture.
The lesson here is simple: don’t believe everything you hear or see on television. The TV is not real, kids.
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