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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    An expert explains the effects of sanctions against Russia on its investments in Iraqi energy

    Rocky
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    An expert explains the effects of sanctions against Russia on its investments in Iraqi energy Empty An expert explains the effects of sanctions against Russia on its investments in Iraqi energy

    Post by Rocky Mon 28 Feb 2022, 6:02 am

    [size=30]An expert explains the effects of sanctions against Russia on its investments in Iraqi energy
    [ltr]2022.02.28 - 11:20[/ltr]
    [/size]
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    On Monday, a professor of economics at Basra University, Nabil Al-Marsoumi, highlighted the effects of sanctions against Russia as a result of its invasion of Ukraine, represented in removing it from the "Swift" regime, on its investments in the Iraqi energy sector.  
      
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    Al-Marsoumi said, in a blog post followed by "Nass" (February 28, 2022), that "the SWIFT system, which is the abbreviated name of the Association for Financial Communications between Banks in the world, which connects more than 11,000 financial institutions operating in more than 200 countries, makes it a The backbone of the remittance system in the world, and it is the most powerful financial weapon with which a country can be punished, as it will cut off the country from a large part of the global financial system.”  
      
    He added, "Russia is the second largest country within Swift in terms of the number of users after the United States, and the volume of financial transactions linked to Russia through Swift reaches hundreds of billions of dollars annually, and removing Russia from Swift will harm Russian trade and make it difficult for Russian companies to do business. commercial as its banks will not be able to communicate securely with banks outside its borders, which is the same punishment that was imposed on Iran in 2014 after developments in Tehran’s nuclear program, the interruption of Russian exports would harm a wide range of industries, extending from fertilizer manufacturers To manufacturers of foodstuffs, automobiles and aircraft, although Russia is best known as a major exporter of oil and gas, along with Ukraine, is also a major supplier of grain to the world. The two countries account for just under a third of global wheat exports."  
      
    He continued, "If these sanctions were strict, and resulted in a decrease in Russian oil exports to Europe and the United States, then Moscow could export to China and Asian countries, and oil prices would rise more than they are now... This rise will partially compensate Russia for the loss of part of its exports. But if Russia is expelled from the global payments system (SWIFT), it can export oil and gas as usual, but it cannot receive the revenues from these exports, and in this case it will resort to what Iran has resorted to, which is opening accounts in western and eastern banks to store money in them until It will be withdrawn at a later time when the crisis subsides."  
      
    Al Marsoumi explained, “In this case, this could negatively affect Iraq, as the Asian market imports about two-thirds of Iraq’s exports of crude oil, especially India and China. market in Asia, while Iraq can increase its oil exports to European markets, especially in light of the high costs of shipping and insurance on Russian oil exports.”  
      
    He indicated that "On the other hand, there are Russian investments in the Iraqi oil and gas sector of more than 13 billion dollars, as Rosneft owns 60% of the Kurdistan oil pipeline, which is the main operational export line in Iraq, and Rosneft is constructing a new gas pipeline whose capacity is expected to reach The export of gas to 30 billion cubic meters of gas annually, which represents about 6% of the total gas demand in Europe. Also, the Russian companies represented by Lukoil, Gazprom and Rosneft are investing in the West Qurna/2, Badra, Block-10 and some fields of Kurdistan, and will be affected Most of the Russian investments in Iraq, especially for companies operating in the oil licensing fields, that pay their costs and profits in kind, i.e. in return for a certain amount of oil produced, which requires searching for a new mechanism for settling accounts with the Iraqi government, or this may lead to the withdrawal of Russian companies from the Iraqi fields, in addition to other difficulties. Concerning how Russian companies implement their subcontracts with companiesothers and how to finance them.  
      
    And the US administration announced that the United States and its allies had targeted Russia with new sanctions that included its major banks.  
      
    A senior official in the administration of US President Joe Biden said that "the United States and its allies targeted Russia with new sanctions, which included preventing its major banks, including the central bank, from using the SWIFT system for interbank financial payments."    
      
    For his part, German government spokesman Stephen Hepstreet said that "Germany, Britain, Italy, Canada, the United States, France and the European Commission have agreed to tough new financial sanctions against Russia, including the separation of some Russian banks from the SWIFT system."    
      
    He added, "It was decided to separate all Russian banks that have been sanctioned by the international community, and if necessary, other Russian banks will be separated from SWIFT."    
      
    He pointed out that "Western partners decided to limit the ability of the Russian Central Bank to support the ruble exchange rate through international financial transactions."    
      
    For her part, European Commission President Ursula von der Leyen said that "the European Union countries, along with their partners, intend to separate some Russian banks from the SWIFT system."  
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