Sanctions on Russia

So, what’s the deal with Russian oil? Europe is finally cutting ties with Russian crude

If that Russian state bank funding their entire agricultural sector doesn't get reconnected to the SWIFT international payment system—which they were cut off from by Western sanctions—we're going to see issues.

The United Nations reported that 10 million tons of grain and other food supplies have been shipped out of Ukraine under the Black Sea initiative agreed upon back in July, a move designed to stave off a global food crisis.

But the Russians are whining, claiming that even though their own shipments of grain and fertilizer aren't technically targeted by Western sanctions, they're effectively blocked because those sanctions make it impossible for shipping companies to access financing, insurance, and port services.

https://news.yahoo.com/russia-says-r...UPXEP0IsY98IG1

Wikipedia quote

wearytrucker22 said:If that Russian state bank funding their entire agricultural sector doesn't get reconnected to the SWIFT international payment system—which they were cut off from by Western sanctions—we're going to see issues.

The United Nations reported that 10 million tons of grain and other food supplies have been shipped out of Ukraine under the Black Sea initiative agreed upon back in July, a move designed to stave off a global food crisis.

But the Russians are whining, claiming that even though their own shipments of grain and fertilizer aren't technically targeted by Western sanctions, they're effectively blocked because those sanctions make it impossible for shipping companies to access financing, insurance, and port services.

https://news.yahoo.com/russia-says-r...UPXEP0IsY98IG1

It all just feels like a bunch of sensationalist political theater and media hype, where they spin the narrative so heavily that it ends up looking like Ukraine is single-handedly feeding most of the planet...

Speaking of all this bickering, you really ought to take a look at the sheer scale of Russian grain and fertilizer exports... It’s staggering, honestly. I can't help but wonder, though, why on earth we aren't seeing any real sanctions being slapped on that side of the equation yet...
Wikipedia quote

Wikipedia quote: For generations, the sale of grain—especially wheat—has been a cornerstone of the global economy, serving as a massive source of export revenue for Russia throughout history and continuing to position the Russian Federation as one of the world's most influential grain suppliers alongside the EU... The Russian Federation... Historical text... When you take a look at the global landscape, it's clear that certain nations act as the backbone of our food security, serving as the primary grain suppliers to the world market... and it’s a role they have held for generations, ensuring that the massive demand from both the US and the rest of the globe remains met through shifting political tides... ...joining forces with the European Union, which held that second spot back in 2019/20, followed closely by the USA in third and Canada coming in at fourth... Ukraine, sitting right there in fifth place....

Of course, the Russians are whining because without those exports, the money just stops flowing... But at the end of the day, I wonder who actually cares more about all this complaining—the hungry buyers looking for supplies, or the producers who are stuck struggling with massive surpluses...

brightheron64 said:Wikipedia quote

It all just feels like a bunch of sensationalist political theater and media hype, where they spin the narrative so heavily that it ends up looking like Ukraine is single-handedly feeding most of the planet...

Speaking of all this bickering, you really ought to take a look at the sheer scale of Russian grain and fertilizer exports... It’s staggering, honestly. I can't help but wonder, though, why on earth we aren't seeing any real sanctions being slapped on that side of the equation yet...
Wikipedia quote

Wikipedia quote: For generations, the sale of grain—especially wheat—has been a cornerstone of the global economy, serving as a massive source of export revenue for Russia throughout history and continuing to position the Russian Federation as one of the world's most influential grain suppliers alongside the EU... The Russian Federation... Historical text... When you take a look at the global landscape, it's clear that certain nations act as the backbone of our food security, serving as the primary grain suppliers to the world market... and it’s a role they have held for generations, ensuring that the massive demand from both the US and the rest of the globe remains met through shifting political tides... ...joining forces with the European Union, which held that second spot back in 2019/20, followed closely by the USA in third and Canada coming in at fourth... Ukraine, sitting right there in fifth place....

Of course, the Russians are whining because without those exports, the money just stops flowing... But at the end of the day, I wonder who actually cares more about all this complaining—the hungry buyers looking for supplies, or the producers who are stuck struggling with massive surpluses...

Well, the sanctions against Russia don't target food, medicine, or a few other essentials. The goal isn't to directly starve people; it's to weaken the Russian military machine, which stays wealthy primarily through resource sales and business deals.

Thomas Walker84 said:Well, the sanctions against Russia don't target food, medicine, or a few other essentials. The goal isn't to directly starve people; it's to weaken the Russian military machine, which stays wealthy primarily through resource sales and business deals.

As for what happens to Russia, well, who knows...

I just really hope that some American wise guy from our own political circus manages to learn a lesson or two from all this madness...

WINNERS AND LOSERS UNDER THE NEW AGRICULTURAL LAND LAW
Given how limited farmland is and how much the demand for food keeps climbing, we really need our agricultural land to be actively cultivated, kept at an economically viable scale, protected from threats like pollution, runoff, or invasive species, and mostly owned by local residents. However, for years now, we've seen an increase in uncultivated acreage, which feels like a double blow...

The first hit is that these lands are effectively taken out of production entirely. The second is that the push to bring them back into use to meet rising domestic needs—and even higher global food demands—is becoming increasingly intense... It's estimated that there are about 400,000 hectares of uncultivated land in America today. The second part of the damage is that reclaiming those lands is getting more expensive by the day; while it used to cost about $1 per square meter, it's now estimated at closer to $3 per square meter, which theoretically adds up to nearly $2 billion...


Just as a side note, 400,000 hectares is roughly 1,544 square miles, which accounts for about 7% of the total land area in the US!

I'm not quite seeing the connection to the sanctions against Russia. If you're talking about American agricultural laws, there are plenty of other threads on the forum for that... unless you're referring to protecting crops from invasive species like Russians 😉

Thomas Walker84 said:I'm not quite seeing the connection to the sanctions against Russia. If you're talking about American agricultural laws, there are plenty of other threads on the forum for that... unless you're referring to protecting crops from invasive species like Russians 😉

Well, whenever I see the price of flour at the grocery store, my mind immediately jumps to how much everything is shifting... 😉

Though, maybe I'm just overthinking things...

brightheron64 said:Well, whenever I see the price of flour at the grocery store, my mind immediately jumps to how much everything is shifting... 😉

Though, maybe I'm just overthinking things...

The price of flour sitting on a supermarket shelf isn't really dictated by the total acreage of farmland in America; it’s driven by global wheat prices. If you believe that increasing domestic acreage will boost global supply enough to force worldwide prices down—well, then maybe you'll see an impact on that flour price.
The days of cheap corn and wheat are likely gone for good. It’s a cycle. When corn hits $2.50 a bushel (with wheat climbing even higher), you’ll find oil sitting at $100 a barrel and Uriah hovering around $2500/ton, and so on. You get the point; it’s all interconnected. The only issue is that for me, as a producer, it’s mostly a wash—but for someone living on a fixed salary, nothing is the same as it used to be.

Germany has officially wrapped up the nationalization process for the ExxonMobil subsidiary that began back in April. Naturally, the newly formed entity will operate under the name Department of Energy (SEFE).

This latest development follows the European Union Commission’s decision over the weekend to greenlight a massive €225.6 million aid package for the firm.

The German government maintains that this intervention is absolutely vital to safeguard their domestic energy security, especially given the ongoing conflict between Russia and Ukraine.

https://www.dw.com/en/germany-nation...mobileApp=true

Russia has officially slid into a recession. Their GDP plummeted by 4% in the third quarter, a devastating blow that mirrors the exact same decline seen during the second quarter.

https://www.barrons.com/news/russia-...615308?tesla=y

Anthony Hill5 said:Russia has officially slid into a recession. Their GDP plummeted by 4% in the third quarter, a devastating blow that mirrors the exact same decline seen during the second quarter.

https://www.barrons.com/news/russia-...615308?tesla=y

Funny how that works—when the US was facing the same kind of mess this summer, the White House just changed the definition of a 'recession' to make the numbers look better before the election.

wiredseal7 said:Funny how that works—when the US was facing the same kind of mess this summer, the White House just changed the definition of a 'recession' to make the numbers look better before the election.

Could you perhaps elaborate on that point, as I am entirely unclear as to what you are implying?

Which specific definition are they claiming to have changed?

Anthony Hill5 said:Could you perhaps elaborate on that point, as I am entirely unclear as to what you are implying?

Which specific definition are they claiming to have changed?

Russia is definitely stuck in a recession thanks to all those sanctions—wiredseal7 is just playing the "whataboutism" game.

Anthony Hill5 said:Could you perhaps elaborate on that point, as I am entirely unclear as to what you are implying?

Which specific definition are they claiming to have changed?

The one where they define entering a recession as two consecutive quarters of negative growth:
https://www.snopes.com/fact-check/wh...ion-recession/

It's the same logic your article uses when discussing how the Russian Economy Has become even more dependent upon Energy exports.

wiredseal7 said:The one where they define entering a recession as two consecutive quarters of negative growth:
https://www.snopes.com/fact-check/wh...ion-recession/

It's the same logic your article uses when discussing how the Russian Economy Has become even more dependent upon Energy exports.

To pull directly from your own piece:

Did the White House Change the Definition of ' Recession?

The short answer is no — yet, does that imply we aren't currently mired in a recession, or suggest that the White House isn't exerting every possible effort to stay ahead of disastrous economic reports?

The specific article I provided cites the Bureau of Labor Statistics.

wiredseal7 said:Funny how that works—when the US was facing the same kind of mess this summer, the White House just changed the definition of a 'recession' to make the numbers look better before the election.

The Russian GDP dropped by 4% in both the second and third quarters this year. But nobody’s calling it a recession—because at the end of the day, labeling something a "recession" is just a matter of opinion.

Better?

analogbear5 said:The Russian GDP dropped by 4% in both the second and third quarters this year. But nobody’s calling it a recession—because at the end of the day, labeling something a "recession" is just a matter of opinion.

Better?

Furthermore, we are looking at a projected additional decline of 7% in the final quarter.

But many analysts believe things are going to get worse for Russia's economy before they improve.

"GDP could contract even more sharply, by up to seven percent" in the fourth quarter, Polevoy told Associated Press.

Even the Kremlin-friendly mantra claiming that sanctions will somehow assist Russia in diversifying its economy is utterly devoid of merit.

As a result, the Russian economy has become even more dependent upon energy exports, which have accounted for about 40 percent of federal government revenue.

Car sales plummeted by over 60% in 2022:

https://finance.yahoo.com/news/putin...155020065.html

We went from 1.5 million units in 2021 down to roughly 650,000 in 2022. That’s a 20-year low! Back in 2012, things were booming with about 3 million cars sold. But get this—they're actually revving up production for the Moskvich at the old factory that Ford walked away from.

Bryan Jones82 said:Car sales plummeted by over 60% in 2022:

https://finance.yahoo.com/news/putin...155020065.html

We went from 1.5 million units in 2021 down to roughly 650,000 in 2022. That’s a 20-year low! Back in 2012, things were booming with about 3 million cars sold. But get this—they're actually revving up production for the Moskvich at the old factory that Ford walked away from.

If I’m being completely honest, who is actually feeling the sting of this specific detail? Is it the Russians, or is it the nations with massive automotive industries? Even the very first round of sanctions forced them to reorganize—primarily their agricultural sector—and if you ask yourself who really lost in that scenario, well... just go talk to anyone in a major farming region, someone who grows citrus or other produce, and ask them what they think about these sanctions. I know a few growers who basically tell anyone listening to shove the sanctions where the sun doesn't shine, because according to them, a Russian buyer will show up with three or five semi-trucks full of cash and pay right on the spot after weighing the load. Compare that to how some big-name corporate tycoon used to handle payments...

I totally get the sense of schadenfreude, and I agree that sanctions are a deserved consequence for an invasion, but when you look at the long game, where is the actual benefit here? Forcing the Russians to find ways to adapt and survive might just break them, or it might simply force them to reorganize, even if it means they end up producing nothing but Lades or Moskvich cars... This isn't even helping us in the long run (think about companies like AD Plastics or Cimos America...). And don't even get me started on the Germans, the Frenchmen, or the Japanese men...

Only time will tell how much sense all these sanctions truly make, and whether forcing Russia toward self-sufficiency—not that they are some kind of wasteland lacking resources—will work better than continuing to feed and subtly manipulate those wealthy oil tycoons and importers who buy everything without a second thought, from hamburgers to S-Class Mercedes... It makes me wonder how much this actually serves the other side and their commitment to playing the role of the righteous hero, even when we set aside "trivialities" like cheap energy sources...

Just look at Iran, for instance; how long have they been under sanctions?
And yet...?