Sanctions on Russia

Andrew Miller102 said:That’s all well and good,😁 but once gas shortages hit and factories start shutting down their production lines, the mood is going to shift pretty quickly.

The Germans are acting incredibly reckless here, though honestly, anyone would be if their entire manufacturing sector was tethered to Russian gas.☕

Sorry to burst your bubble, but they aren't just going to shut down all the factories in Germany because of the gas supply.
germany 2020
Residential buildings account for 21.5%, service buildings and agriculture take up 25.5% of gas consumption; the industrial sector sits at 28% and the power sector at 25%.

In Germany, households used 18.7 billion cubic meters of natural gas. Total German consumption in 2020 was 86 billion cubic meters. In 2021, Germany imported 142 billion cubic meters of gas, with 42 billion coming from Russia, 28.4 from Norway, and 17.4 from the Netherlands. With domestic production and other imports totaling 31.24 bcm, it looks like the Germans actually enjoy a little trading.

The Germans are crying like they're being slaughtered. Prices for shopping centers and construction could easily jump by 50% given how little they pay for heating. They need to find a different way to handle electricity; you can't just charge 75 Euro per Megawatt hour (MWh) for gas. That needs to be balanced against electricity prices—maybe a 10% difference max—and honestly, they should just fire up the nuclear plants already. What are they waiting for?

Check24 data showed the 11.5% increase will add 172 dollars to the bills of some 310,000 households, which pay $1,775.54 for 20,000 kilowatt hours (kWh) of annual gas consumption.

Around 290,000 average households with 5,000 kWh annual power consumption have been notified of 3.7% increases in their annual prices, adding 63 dollars to their annual bill of $1,532.

wiredseal7 said:It’s not just the bombs, either—they're running from those aggressive sanctions, too.

Russian revenue fluctuations pretty much track gas prices.
https://adamtooze.substack.com/p/cha...0m-per-day?s=r

If I remember right, a lot of the buyer countries used to insist on spot market rates instead of fixed ones. But that was back when gas was cheap...

Why on earth would anyone flee from sanctions? Is it not possible that such measures serve only to fortify them and drive them toward total self-sufficiency? Look at Russia. Since those sanctions were first slapped on them back in 2014, in what single aspect have they not managed to advance? They produce everything themselves now, evolving into one of the most formidable military and economic powers on the planet.

Honestly, this image pretty much sums up the entire gas situation. Maybe Europe could actually step up and start producing its own supply instead of just sitting around.

Anthony Hill5 said:They certainly could, but they won't. Is anyone actually naive enough to believe they'll just bow down to these demands?

Germany says Putin agreed to keep payments for gas in euros

https://www.dw.com/en/germany-says-p...ros/a-61310461

They’ll do it, but they'll buy rubles through Gazprombank instead. This is just the start of their games with currency conversion and exchange rates. It's not a windfall; it's a trap.

Melissa Peterson19 said:They’ll do it, but they'll buy rubles through Gazprombank instead. This is just the start of their games with currency conversion and exchange rates. It's not a windfall; it's a trap.

Why on earth would they bother buying rubles? What good does that do them when Gazprom is just going to supply the gas during the summer anyway?

Things are looking pretty rough for Russia right now. Honestly, I’d sell everything I own just to get out of this mess. It’s basically a total fire sale at this point. I mean, think about it—it’s getting to the stage where Russia actually has to go begging and offer massive discounts to India just to convince them to buy any oil at all.

#Russia Offers Discounts on Oil to India, One of Putin's Few Fuel Buyers

They're talking about slashing prices on Urals crude by as much as $35 a barrel!

Transactions will be routed between Rosneft and Indian Oil
#oott

https://t.co/FrBCRRKIyl

goldenowl73 said:Things are looking pretty rough for Russia right now. Honestly, I’d sell everything I own just to get out of this mess. It’s basically a total fire sale at this point. I mean, think about it—it’s getting to the stage where Russia actually has to go begging and offer massive discounts to India just to convince them to buy any oil at all.

#Russia Offers Discounts on Oil to India, One of Putin's Few Fuel Buyers

They're talking about slashing prices on Urals crude by as much as $35 a barrel!

Transactions will be routed between Rosneft and Indian Oil
#oott

https://t.co/FrBCRRKIyl

So much for their "strength"...
At this rate, the Russians might as well give it away for free! The whole market is just completely trashed right now.

It looks like someone finally sat Putin down and explained that he can just keep using Euros to buy Rubles to prop up his own exchange rate, just like he’s been doing all along. What an idiot.

Funny how nobody here has even brought up the 20% interest rate yet—everyone’s just obsessing over the exchange rate and those mandatory buybacks.

wearytrucker22 said:Honestly, this image pretty much sums up the entire gas situation. Maybe Europe could actually step up and start producing its own supply instead of just sitting around.

It’s just impossible with these green extremists. Just look at the Midwest and parts of the Great Plains. We have regions with way too much water struggling through droughts, and then suddenly facing floods. It's nearly impossible to capture that excess water in reservoirs to irrigate fields during a dry spell. But no, we can't touch anything because of butterflies, bugs, or some rare species of worm... apparently, we'd need to bulldoze three small towns to make progress. So instead, we just let the floods and droughts keep happening...

Anthony Hill5 said:Why on earth would anyone flee from sanctions? Is it not possible that such measures serve only to fortify them and drive them toward total self-sufficiency? Look at Russia. Since those sanctions were first slapped on them back in 2014, in what single aspect have they not managed to advance? They produce everything themselves now, evolving into one of the most formidable military and economic powers on the planet.

Nice comparison—comparing a country sitting on the planet's largest stash of natural resources to nations that basically have to beg for their fuel and raw materials just to keep the lights on.

Iran manages to stay afloat despite the sanctions—they've got enough resources to weather the initial storm—but the rest of them were caught totally off guard. Take Syria, for example.

Joshua Wilson17 said:It’s just impossible with these green extremists. Just look at the Midwest and parts of the Great Plains. We have regions with way too much water struggling through droughts, and then suddenly facing floods. It's nearly impossible to capture that excess water in reservoirs to irrigate fields during a dry spell. But no, we can't touch anything because of butterflies, bugs, or some rare species of worm... apparently, we'd need to bulldoze three small towns to make progress. So instead, we just let the floods and droughts keep happening...

And a good chunk of it hits populated areas—think places like Chicago or northern New York. We aren't talking about some empty stretches of the Midwest where you can risk contaminating the water supply or messing with seismic activity without anyone noticing. We could just do it in the rural heartland—everyone’s already left for jobs in the cities anyway.

wiredseal7 said:Nice comparison—comparing a country sitting on the planet's largest stash of natural resources to nations that basically have to beg for their fuel and raw materials just to keep the lights on.

Iran manages to stay afloat despite the sanctions—they've got enough resources to weather the initial storm—but the rest of them were caught totally off guard. Take Syria, for example.

And a good chunk of it hits populated areas—think places like Chicago or northern New York. We aren't talking about some empty stretches of the Midwest where you can risk contaminating the water supply or messing with seismic activity without anyone noticing. We could just do it in the rural heartland—everyone’s already left for jobs in the cities anyway.

At the end of the day, all those resources don't mean squat if you can't actually get them out of the ground and sell them somewhere.

wiredseal7 said:Nice comparison—comparing a country sitting on the planet's largest stash of natural resources to nations that basically have to beg for their fuel and raw materials just to keep the lights on.

Iran manages to stay afloat despite the sanctions—they've got enough resources to weather the initial storm—but the rest of them were caught totally off guard. Take Syria, for example.

And a good chunk of it hits populated areas—think places like Chicago or northern New York. We aren't talking about some empty stretches of the Midwest where you can risk contaminating the water supply or messing with seismic activity without anyone noticing. We could just do it in the rural heartland—everyone’s already left for jobs in the cities anyway.

Who cares if you've got oil in your own backyard if you've got 500 mobsters living large thanks to Putin while everyone else is barely scraping by?

wiredseal7 said:Nice comparison—comparing a country sitting on the planet's largest stash of natural resources to nations that basically have to beg for their fuel and raw materials just to keep the lights on.

Iran manages to stay afloat despite the sanctions—they've got enough resources to weather the initial storm—but the rest of them were caught totally off guard. Take Syria, for example.

And a good chunk of it hits populated areas—think places like Chicago or northern New York. We aren't talking about some empty stretches of the Midwest where you can risk contaminating the water supply or messing with seismic activity without anyone noticing. We could just do it in the rural heartland—everyone’s already left for jobs in the cities anyway.

The reality is that technology and expertise matter far more than just having raw resources. If you possess the tech and the know-how, you can easily acquire resources and actually do something productive with them.

Without that technological edge and specialized knowledge, you're stuck doing exactly what Russia does—just selling off raw materials...

goldenowl73 said:Things are looking pretty rough for Russia right now. Honestly, I’d sell everything I own just to get out of this mess. It’s basically a total fire sale at this point. I mean, think about it—it’s getting to the stage where Russia actually has to go begging and offer massive discounts to India just to convince them to buy any oil at all.

#Russia Offers Discounts on Oil to India, One of Putin's Few Fuel Buyers

They're talking about slashing prices on Urals crude by as much as $35 a barrel!

Transactions will be routed between Rosneft and Indian Oil
#oott

https://t.co/FrBCRRKIyl

They simply have to sell; if they don't, production grinds to a halt because they'll run out of storage space. We might see prices slashed by 50% soon, and if they still can't clear the backlog, those oil fields will be forced to shut down entirely.

William Anderson5 said:It looks like someone finally sat Putin down and explained that he can just keep using Euros to buy Rubles to prop up his own exchange rate, just like he’s been doing all along. What an idiot.

If they keep this up, we're looking at a one-to-one ratio between the Ruble and the Dollar. 😬

hollowdriver13 said:At the end of the day, all those resources don't mean squat if you can't actually get them out of the ground and sell them somewhere.

William Anderson5 said:The reality is that technology and expertise matter far more than just having raw resources. If you possess the tech and the know-how, you can easily acquire resources and actually do something productive with them.

Without that technological edge and specialized knowledge, you're stuck doing exactly what Russia does—just selling off raw materials...

You guys are drifting—I told Maskeron that not all countries handle sanctions the same way.

Most of the ones hitting Russia are still forced to import their raw materials. That wasn't really the case with other sanctioned nations.

Joshua Wilson17 said:It’s just impossible with these green extremists. Just look at the Midwest and parts of the Great Plains. We have regions with way too much water struggling through droughts, and then suddenly facing floods. It's nearly impossible to capture that excess water in reservoirs to irrigate fields during a dry spell. But no, we can't touch anything because of butterflies, bugs, or some rare species of worm... apparently, we'd need to bulldoze three small towns to make progress. So instead, we just let the floods and droughts keep happening...

Honestly, it might not be such a bad thing having the Greens in power in DC. The way things are going, this has become a direct problem they actually have to solve. If they were still in the opposition, they’d just be rambling on about butterflies and other nonsense. Now, they'll actually have to get on the same page about building new pipelines and ramping up production on existing ones.

link

wiredseal7 said:You guys are drifting—I told Maskeron that not all countries handle sanctions the same way.

Most of the ones hitting Russia are still forced to import their raw materials. That wasn't really the case with other sanctioned nations.

If that’s the point you're making, then "you also have to consider that most people are completely oblivious to those lesser-known but unfortunately vital or irreplaceable raw materials". We aren't talking about oil or gas here; if you want the specifics, check out the links below.☕

Putin just confirmed it—starting tomorrow, they're only taking rubles for gas.