This is a CBSI on the world. I'm John Bachelor. I welcome Michael Bernstom of the

Hoover Institution, my guide on the Russian economy under severe sanctions, sanctions that no nation can

stand up to for very long, condemning the Russian economy in decades to troubles, except headline of the Financial Times,

almost no Russian oil is sold below $60 cap, say Western officials.

Sub-Ed allies discuss ways to tough it up. Key sanction as Moscow

circumvents limits on seaborne crude. Michael, a very good evening to you. We know about the Ghost Fleet.

We know about Smugly.

How do they beat the $60 and is it something that can be countered by Treasury?

Good evening to you. Good evening to you. Good evening to you and my position is that we should just let it slide and I will explain why.

Russian companies exporters are saving under $60 in the system called F-O-B-B-F-O-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B-B. They report. They sell it. They sell it. record under $60.

And that's how they pay taxes on.

Then they sell it to traders.

Traders are middlemen.

Some of them are affiliated with Russian exporters, the Russians living in Dubai.

Others are global middlemen traders from all these countries.

They add the freight and insurance costs and then they sell the world market price with the

discount because the quality of the Russian main Russian oil

euros is a bit lower and the current today the Ministry of

Finance of Russia publishes the new data and that this Russian oil

sells about nine dollars below the brand, North Sea Oil.

So that's a market price.

The problem is that the difference between the price gap and the market price is not pocketed by the Russian government,

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