Russian Sanctions Killing Europe : Petrol In The Balkans Today Is At RM12.00 Per Litre.

 Here is today's world oil price in US Dollars. It has come down a little since the suggestion of talks between Russia and Ukraine today and yesterday.

And here are petrol pump prices per litre across Europe (in Euros) last week 7th March 2022. Please multiply by RM4.63 to get the Ringgit price.

This morning I was informed that petrol prices TODAY in the Balkan countries is at RM12.00 per liter.

 

One week ago (7 March 2022) one liter of RON 95 was at over RM7.00 per litre in Bosnia. The price perliter has increased by RM5 per liter in about seven days.

Here is a short conversation (about 14 minutes) between George Galloway and another speaker where they say that over 80% of grain imports into the Balkan countries which came from Russia have now been cut off (because of the sanctions). Hence price of bread and foods is going through the sky. Do listen to them: 

Russia has China across the neighborhood fence. The border between them is over 4000km. If you include Mongolia that is another 3000 km of land border for transport and communications between China and Russia. 

Russia has an almost endless quantity of natural resources and minerals including oil and gas which China is ever ready to buy. China has an almost endless supply of manufactured goods and technology products which Russia can buy. 

China has already agreed to buy whatever oil and gas, wheat and corn which Russia cannot sell to Europe. Plus anything else. And China is ready to supply as many cars and vehicles, buses and trains that Russia may want to buy.

Russia has all the wheat and bread that they can eat. They also have all the petrol and diesel that they may need. They manufacture themselves and they can also buy from China all the manufactured goods that they need.

Europe on the other hand is already paying RM12.00 per liter for petrol, food prices are shooting up as well. Russians buy plenty of Mercedes Benz cars from Germany. Where will Mercedes sell all those cars now?

Here is a nightmare scenario for Europe - lets say this Ukraine crisis comes to an end and the American sanctions against Russia are lifted. But then Russia refuses to reopen their markets for Europe, the US and Japan. 

Meaning petrol prices may still be RM7 - RM12 per liter in Europe. Or bread prices may still be high. What happens to Europe? 

Mr Putin may demand that NATO leave all the former Soviet republics before Russia will resume trade links with Europe and Japan again.  

This is interesting.

 The views expressed are those of the writer and do not necessarily reflect those of MMKtT.