Yes, that’s what the sanctions are intended to do. Russia should struggle to make any profit from their gas and oil. It would be ideal if they couldn’t sell at all, but forcing them to sell at steep discounts is still very good. This Hormuz straight business has unfortunately caused the price of oil to go up, which will significantly increase the price Russia can sell at.
What’s actually happening here is that Russia is grabbing the market early and undercutting the Burger Reich. Once they’ve secured customers then prices will obviously go up.
What is also happening is that Russia is making more money selling at a discount on the spot market, especially with the price increases happening now, than if they had long term fixed contracts. That’s what all of these morons here in Europe don’t understand either. When they tore up the very favorable contracts they had with Russia and went to buying Russian oil and gas at spot prices and through intermediaries like India, they just put more money in Russia’s pocket.
That’s also a great point.
They’ve been selling oil and gas this entire time, there isn’t any need to secure customers, they already have them. The discount is essentially the effect that they have a smaller pool of buyers, and those buyers piss off a number of other players (countries, buyers, sellers, insurance, etc) by buying from Russia. A few buyers have to also contend with paying a country that has demonstrated a willingness to invade their neighbors. Many of the former Soviet states, for example, have continued to buy Russian oil this entire time, while putting in big efforts to transition away. Their oil and gas purchases have been heavily criticized by people who don’t understand how long it takes to change energy sources.
Russia is obviously able to expand sales to more customers, and diversification makes sense as well. They don’t want to be reliant on one or two big customers here. Also, selling at a discount on spot market still brings in far more revenue than long term pipeline contracts with Europe did. Meanwhile, the west is literally facilitating a genocide in Gaza and people living in western countries have zero moral ground to bray about Russia at this point. Finally, not sure what these big efforts to transition away are exactly. So far, it’s pretty clear that Russia has done far more to transition away from Europe than the other way around.
That wasn’t a moral judgment of the Russian invasion, it was just pointing out a strategic reality for neighbors. Likewise, Gazans would probably have issue with buying Israeli products if given choice.
Still, I don’t know what to tell you. Russian carbon energy export profits have fallen hard since the beginning of the invasion, with much of the losses coming out of their pipelines.
See this graph in this article/report. You can find quite a lot of other articles talking about how the recent spike in prices from the Hormuz bullshit is a huge boon for Russian carbon energy.
The strategic reality of Russia’s neighbours is obviously that they can’t change their geography and have to find a way to live with Russia. That should be obvious to anybody with even a minimally functioning brain. The war in Ukraine is a direct result of Europe acting in the American interest and participating in expansion of NATO. It’s incredible to me that people still can’t understand this basic fact.
Meanwhile, the report you yourself linked clearly shows that Russian energy exports have remained stable overall. The harm that’s been done to Europe is far greater than any profits Russia has lost over the past 4 years. Not only that, but with Russian supplies cut off and now the Gulf, Europe finds itself entirely dependent on the US which is a predatory power.
The strategic reality of Russia’s neighbours is obviously that they can’t change their geography and have to find a way to live with Russia. That should be obvious to anybody with even a minimally functioning brain.
Yes? We’re in agreement here. The neighbors are happy to get their oil at a discount. They would not be getting this discount were it not for the sanctions, since there would be more competition in the buyer’s market.
The war in Ukraine is a direct result of Europe acting in the American interest and participating in expansion of NATO.
If Russian leadership was under the illusion that NATO was secretly an offensive alliance, and thus needed to preemptively invade Ukraine, it should be clear with this Hormuz straight business that it really is a defensive alliance. Trump tried to get the NATO members to help and they all told him to pound sand.
Meanwhile, the report you yourself linked clearly shows that Russian energy exports have remained stable overall.
They’re down year-over-year, with the biggest hit coming in the first year. The sanctions did what they could (forced Russia to offer big discounts) and now they’re stable in their effect.
The harm that’s been done to Europe is far greater than any profits Russia has lost over the past 4 years.
I mean, this is an argument fraught with “nuh-uh” and hand-waving on all sides. “Worth it” is very subjective, especially when the harm to both sides is relatively minor, in the grand scheme of things. Both sides have adjusted to the new reality.
Not only that, but with Russian supplies cut off and now the Gulf, Europe finds itself entirely dependent on the US which is a predatory power.
The European oil sources are super diverse, there’s no need to make this a false East vs West thing. I’m literally just here to explain that Russia is selling oil at a discount because it has to, not because it wants to.
Yes? We’re in agreement here. The neighbors are happy to get their oil at a discount. They would not be getting this discount were it not for the sanctions, since there would be more competition in the buyer’s market.
You’ve never seen a company offer a discount price initially to get people to sign up? This is the same approach. Once trade relations are established, and these countries build up infrastructure around buying Russian energy, Russia will start raising prices. The key part is that it’s already more profitable for Russia than selling pipeline gas to Europe on fixed contracts ever was.
If Russian leadership was under the illusion that NATO was secretly an offensive alliance, and thus needed to preemptively invade Ukraine, it should be clear with this Hormuz straight business that it really is a defensive alliance. Trump tried to get the NATO members to help and they all told him to pound sand.
NATO has literally been invading one country after another ever since Yugoslavia. One has to lack even a shred of intellectual integrity to claim that it is s defensive alliance. The Hormuz business simply exposes the fact that even Europe isn’t imbecilic enough to follow the US into this debacle directly. However, NATO members are currently actively participating in the war by providing the US military bases to stage attacks on Iran. This is in fact direct proof that NATO is not a defensive alliance. Try to put at least a bit of effort into your trolling here.
They’re down year-over-year, with the biggest hit coming in the first year. The sanctions did what they could (forced Russia to offer big discounts) and now they’re stable in their effect.
They’re not down year over year in any meaningful sense. It’s pretty clear that they are in fact quite steady. What’s down is economic activity all across Europe with energy prices being three times that of US and six times higher compared to China. The European industry is no longer competitive on the global stage. Europe cutting itself from Russian energy was the equivalent of cutting off your own feet to spite your cobbler.
I mean, this is an argument fraught with “nuh-uh” and hand-waving on all sides. “Worth it” is very subjective, especially when the harm to both sides is relatively minor, in the grand scheme of things. Both sides have adjusted to the new reality.
LMFAO no it’s not. Every single economic indicator from Europe shows shrinking economic activity and growing inflation. There’s a reason there’s no major European leader polling above 20% right now.
The European oil sources are super diverse, there’s no need to make this a false East vs West thing. I’m literally just here to explain that Russia is selling oil at a discount because it has to, not because it wants to.
If by super diverse you mean that you buy Russian oil at a markup from Kazakhstan, India and Turkey then sure.
Remember when NATO “”“defensively”“” destroyed Libya? I remember.
