Trump’s oil strategy: Threatening Putin's economic stronghold
Donald Trump's presidential advisor has threatened to flood the world with cheap oil, which could lead to "bankrupt the Russian economy." "That is going to put an incredible stain on Putin’s wartime economy," said Robert Wilkie in an interview with the BBC.
The new American administration intends to significantly increase pressure on Russia's key economic sector—energy—which provides more than half of all export revenues for the country.
Threats to flood the world with cheap oil
Robert Wilkie, the head of Donald Trump's transition team, said that if Vladimir Putin did not agree to a deal on Ukraine, the United States would drastically increase oil supplies to the world market and reduce its price to $40 (£33) per barrel or less.
As Wilkie explains, the increased US presence in the global oil market will cause prices to drop, potentially bankrupting the Russian economy. "That is going to put an incredible stain on Putin’s wartime economy," he warned. He also announced an increase in American liquefied natural gas supplies to Europe, where it already holds 70% of the market, and in some countries, such as Germany, around 90%.
Trump intends to drill
During the election campaign, Trump announced a large-scale expansion of oil and gas extraction in the United States. He promised that oil production in the country would increase by 15%, or 3 million barrels per day, which fully matches the current export of Russian oil by tankers.
On Wednesday, Donald Trump urged Russian President Vladimir Putin to end the war in Ukraine. He threatened that if an agreement is not reached promptly, he would have no choice but to "put high levels of Taxes, Tariffs, and Sanctions on anything being sold by Russia to the United States, and various other participating countries."
