Malaysia’s Role in Laundering Iranian Oil and Europe’s Alternatives to Russian Gas

MAIN TAKEAWAYS

• Economic sanctions do not work.  Malaysia is importing sanctioned Iranian and Venezuelan crude oil to be shipped to China where it can be refined and exported to Europe and the US as Chinese petroleum products.

• As western sanctions intensify on Russia, oil laundering will become more prominent.

• While Europe diversifies its gas suppliers, the era of cheap Russian gas is coming to an end.  

• Europe has managed to strike some long-term gas deals. Even if the war and sanctions end in the future, Russia will not regain its share in European gas markets.

• Libya and Algeria will play a bigger role in future gas supplies to Europe.