International trade expert Oleh Sarkits stated that Ukraine benefits the most from the trade war between the U.S. and China, as it leads to a drop in the price of Russian oil, Politeka reports.
“The main reason lies in the fact that Donald Trump is waging a trade war with China. It’s truly with China, because all these tariffs and restrictions being introduced by the 47th President of the United States are primarily aimed at slowing the development of the PRC. This is even stated in official U.S. documents—that China is a threat, and it is indeed an adversary,” noted Oleh Sarkits.
According to him, to understand how this affects Russia, it’s important to first understand the mechanism of how reduced U.S.–China interaction influences oil prices. As the expert explains, the primary consumer of oil is any enterprise, since it always uses fuel, plastics, or other oil-derived materials. Therefore, he concludes, tariffs reduce the pace of business development in both China and the U.S., which in turn reduces demand for oil. With less consumption, the price naturally drops.
As the guest of the program reports, today a barrel of American WTI oil costs around $65, European Brent is $68, while Russian Urals and ESPO are priced at $55. This, he points out, shows a clear downward trend—and that benefits Ukraine, as it means lower revenues for the Russian budget.
“As a result, they won’t be able to fund their military-industrial complex as intensively, won’t be able to produce rockets, Shahed drones, and other weapons as quickly and in such large quantities, nor will they be able to purchase these weapons from their partners—North Korea, Iran—who provide not only weapons but even soldiers. And none of this comes for free. So yes, this is good news for Ukraine, because falling oil prices mean the Russian budget receives less income—funds that would otherwise be used to finance the war,” Oleh Sarkits concluded.
Latest news:
Let's remember Politeka wrote, Trump Gives Europe an Ultimatum on Which Communication Technologies to Use.
Politeka also informed, Rubio and Kellogg urges Trump to take a tougher stance on Moscow and Kremlin demands.
In addition, Politeka informed, Trump escalates trade war: who is hit by the new tariffs.
