Greek shipping companies transport large volumes of Russian oil

 And although the transportation of Russian hydrocarbons is not a clear violation of Western sanctions, the Ukrainian government continues to emphasize that the financing of the Kremlin is a serious problem

Although the victory of Russian President Vladimir Putin in the elections was expected (actually predetermined), his regime's resistance to Western sanctions continues to surprise. This is stated in the author's column by Samir Puri, a researcher at Chatham House and a guest lecturer at King's College London, on the pages of Politico, which is reprinted by Foreign Ukraine.

The US and its allies understand that their measures could be tougher — for example, the current price cap on Russian oil only limits exports to Europe. And yet, even in the winter of 2023, there were expectations that this policy could derail the Kremlin's military efforts.

That's because history has shown how the threat of dollar sanctions helped stop the invasion. In 1956, when Great Britain, France, and Israel invaded Egypt to reclaim the Suez Canal, the administration of US President Dwight D. Eisenhower was outraged and threatened to withdraw support for the pound unless the old colonial powers immediately ended it. America's allies heeded the threat.

While the dollar may still have an international economic edge today, Russia's recent uptick in military action despite Western sanctions proves that the US can no longer reverse actions it doesn't like with the stroke of the Treasury's pen, especially as the debate in the US Congress over military aid to Ukraine continues. And Russia's economy protected from sanctions helps it avoid defeat in Ukraine.

As mentioned, the partial impact of Western sanctions on Russia is intentional. The influx of Russian hydrocarbons is considered by most international leaders as an important factor in the stability of the global energy market — and this point of view is tacitly accepted by the USA and the EU.

However, this policy still has its opponents — not least Ukrainian President Volodymyr Zelenskyi, who advocates a full embargo and criticizes various European companies that, in his opinion, aid and abet Russia.

Beyond the undermining of US power projection through ongoing economic disintegration at the international level (see, for example, the BRICS group), there are a number of compelling arguments for why Russia's military efforts in Ukraine have withstood a barrage of Western restrictions.

On the financial front, the Russian government's massive stimulus during the Covid-19 pandemic and later in support of the war paved the way for sustained economic growth and low unemployment. The Central Bank of Russia has achieved similar success in supporting the ruble, curbing inflation.

Russia's trading position also quickly recovered from the initial shock of Western companies closing or at least curtailing operations. In addition, exports — especially seaborne exports of crude oil, which have grown to nearly 3.5 million barrels per day in 2023 — are supported by some European shipping companies, much to the chagrin of Ukraine.

For example, according to an investigation by Global Witness, an NGO that reports on the exploitation of natural resources and corruption, the Greek shipping company TMS Tankers is second only to Sovcomflot, the largest Russian shipping company, in terms of the amount of Russian oil transported. Although in 2023, TMS stated that it stopped transporting Russian oil.

Moreover, TMS is not alone. It is owned by tycoon George Econom and was part of a network of 7 Greek shipping companies that reportedly dominated the wartime Russian oil trade.

And although the transportation of Russian hydrocarbons is not a clear violation of Western sanctions (Greek companies falsely deny this, although they keep silent about the scale of their work with Russia), the Ukrainian government continues to emphasize that the financing of the Kremlin is a serious problem.

Indeed, the National Agency for the Prevention of Corruption of Ukraine (NACP) called on the head of TMS to stop transporting Russian oil in 2022. And finally, it included TMS Tankers, Thenamaris Ships Management, Minerva Marine and Dynacom Tankers Management - all Greek companies - on the list of "international war sponsors".

The funds that Russia continues to receive from oil and gas are quickly diverted to the occupation of eastern Ukraine and to Russian ground forces, which have recently made gains in the Donetsk region. Meanwhile, Zelenskyi's administration is depleting its own resources faster than the West can replenish them.

The destructive isolationism of the American right, Europe's icy approach to curbing Putin's imperialism, and sanctions that have irritated but not completely thwarted the Kremlin, all make Russia's expulsion from the Donbass—and, of course, from Crimea—an unlikely prospect.