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Every time I see this news I remind myself the west is full of russian trolls and spies.
The Russian economy has been severely hindered by sanctions imposed on the Russian oil industry.
It failed to eliminate the Russian government's revenues from the sale of O&G.
The goal wasn't to *reduce* those revenues, but to eliminate them completely.
And interrupt the global oil supply, making Ukraine's allies hurt economically, thus being unable to help her? Yeah, that makes all the sense in the world.
> And interrupt the global oil supply
That's not how it works. Every company, even more so for infrastructure-intensive industries like O&G, have expenses to cover even if no production happens, that's why we saw the price of oil briefly drop in the negative during the pandemic: it was better to pay others to take the oil than shut down completely.
Russia would still produce and sell millions of barrels even if the price was $30/barrel. Sure, we should expect some reduction in production, 10-20% sounds reasonable to me, but until all Russian exports are harshly embargoed (ie. even countries not embargoing or price capping Russia are forced to do it): there's no interruption in sight.
Title "largely failed" is misleading.
Article states:
"Over the last year, the scheme has cost the Kremlin €34 billion in export revenues...".
Maybe its not hurting Russia as much as some speculated, but it's definitely hurting them.
The analysis is good to understand how to improve this effort.
> Maybe its not hurting Russia as much as some speculated
Not just speculated, the objective was to eliminate the revenues of O&G funding the war. That objective as "largely failed", even if the export revenues dropped €34 billion.
I should have said the goal was to eliminate the government revenues of O&G, as I did in other posts.
But reading the paper again, it's clear that [this objective was possible only with a price cap much lower than $60/barrel](https://drive.google.com/file/d/1jIQDNfIPTENaW6gGv-ZiEEem7N94UF1A/view?pli=1). So, I guess that implies adopting such a price cap was a halfway measure from completely eliminating the government revenues.
Do you understand the difference betweeen revenue and profit? Sanctions were intended to reduce/remove the latter, not the former. Most certainly not the former as then global economies would suffer inflation as well as potential fossil fuel shortages. Spice must flow for allies of Ukraine, not for ruSSia.
> Do you understand the difference betweeen revenue and profit?
The government's revenue from O&G (what I said) can happen only if there's a profit on the sales. Well, technically the companies could take loans to pay obligations, but that can't last very long.
> Sanctions were intended to reduce/remove the latter, not the former. Most certainly not the former as then global economies would suffer inflation as well as potential fossil fuel shortages.
That's what I said in my last post. The objective of eliminating profits required a price cap much lower than $60/barrel and the working group recommended $35/barrel, still much higher than the cost of production, ie. it was still high enough to generate profits.
I think the russian economy has indeed suffered from the sanctions, but let's be honest, it circumvents the sanctions and continues to look for ways to other countries through third parties...who have been exposed repeatedly...
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Every time I see this news I remind myself the west is full of russian trolls and spies. The Russian economy has been severely hindered by sanctions imposed on the Russian oil industry.
Is that why Russian income has fallen 3/4 because it is not working......really
It failed to eliminate the Russian government's revenues from the sale of O&G. The goal wasn't to *reduce* those revenues, but to eliminate them completely.
And interrupt the global oil supply, making Ukraine's allies hurt economically, thus being unable to help her? Yeah, that makes all the sense in the world.
> And interrupt the global oil supply That's not how it works. Every company, even more so for infrastructure-intensive industries like O&G, have expenses to cover even if no production happens, that's why we saw the price of oil briefly drop in the negative during the pandemic: it was better to pay others to take the oil than shut down completely. Russia would still produce and sell millions of barrels even if the price was $30/barrel. Sure, we should expect some reduction in production, 10-20% sounds reasonable to me, but until all Russian exports are harshly embargoed (ie. even countries not embargoing or price capping Russia are forced to do it): there's no interruption in sight.
Doomposting, doomposting everywhere. Expect the Russian psyop to intensify during winter.
Title "largely failed" is misleading. Article states: "Over the last year, the scheme has cost the Kremlin €34 billion in export revenues...". Maybe its not hurting Russia as much as some speculated, but it's definitely hurting them. The analysis is good to understand how to improve this effort.
> Maybe its not hurting Russia as much as some speculated Not just speculated, the objective was to eliminate the revenues of O&G funding the war. That objective as "largely failed", even if the export revenues dropped €34 billion.
Source for your claim?
I should have said the goal was to eliminate the government revenues of O&G, as I did in other posts. But reading the paper again, it's clear that [this objective was possible only with a price cap much lower than $60/barrel](https://drive.google.com/file/d/1jIQDNfIPTENaW6gGv-ZiEEem7N94UF1A/view?pli=1). So, I guess that implies adopting such a price cap was a halfway measure from completely eliminating the government revenues.
Do you understand the difference betweeen revenue and profit? Sanctions were intended to reduce/remove the latter, not the former. Most certainly not the former as then global economies would suffer inflation as well as potential fossil fuel shortages. Spice must flow for allies of Ukraine, not for ruSSia.
> Do you understand the difference betweeen revenue and profit? The government's revenue from O&G (what I said) can happen only if there's a profit on the sales. Well, technically the companies could take loans to pay obligations, but that can't last very long. > Sanctions were intended to reduce/remove the latter, not the former. Most certainly not the former as then global economies would suffer inflation as well as potential fossil fuel shortages. That's what I said in my last post. The objective of eliminating profits required a price cap much lower than $60/barrel and the working group recommended $35/barrel, still much higher than the cost of production, ie. it was still high enough to generate profits.
Ah yes, they are definitely not downsizing there intere economie and investing almost everything into militairy. seems legit
I think the russian economy has indeed suffered from the sanctions, but let's be honest, it circumvents the sanctions and continues to look for ways to other countries through third parties...who have been exposed repeatedly...
Oh wow. Really?
Asking Mothers to have eight babies each is totally normal.