Saudi Arabia, UAE defying sanctions to buy cheap Russian oil products

Saudi Arabia and the United Arab Emirates (UAE) are buying petroleum products from Russia at steep discounts, ignoring US objections, the Wall Street Journal (WSJ) reported on Monday. Last year, the United States and its Western partners imposed strict sanctions on Russia for invading Ukraine, cutting off Moscow from its traditional trading partners. This has forced Russia to sell its products at much cheaper rates. “The Gulf countries, especially the UAE, have also become key storage and trading hubs for Russian energy products that can’t be as easily shipped around the globe because of the war.” The price cut has benefitted some energy-starved nations, such as India, but the Russians have also found “eager trade partners in an unlikely place: The oil-rich states of the Persian Gulf,” WSJ reported. “Despite US objections, the Gulf countries are using the discounted Russian products internally, including for consumption and refining purposes, and exporting their own barrels at market rates, boosting their profits,” the report added. The report described the development as a “counterintuitive shift,” allowing countries with the world’s largest oil reserves to buy cheap Russian oil and sell it at higher prices. This was “an illustration of the unexpected consequences of Western sanctions and another example of the US’s waning influence over the Middle East,” the newspaper noted.