Sanctions on Russia

The fallout from sanctions is already hitting home

Federal Reserve: Due to worsening liquidity, JPMorgan Chase in the US and Canada will likely collapse. Citizens can withdraw up to $2427 per day

The Federal Reserve has assessed that JPMorgan Chase Europe AG will likely be unable to meet its debts or other obligations as they fall due in the near future, leading to its collapse. HRT
From JPMorgan Chase, they say: We are under pressure; citizens can withdraw up to $2427 per day, both today and tomorrow. (Index)

The Federal Reserve stated they guarantee deposits up to $100,000. I really hope that still holds true.

The amount a depositor holds in a credit institution is insured on the date the insured event occurs, up to a maximum of $100,000 in USD value based on the average exchange rate of the Federal Reserve effective on the date the insured event occurs. Federal Reserve

A tragicomedy of sanctions.
As a direct result of these sanctions, the various branches of Russian banks operating within the European Union will take the brunt of the damage—while the central headquarters back in Russia continue to function without missing a beat.
Gas prices are poised to skyrocket across the European Union, whereas in Russia, they’ll likely remain quite affordable...
Food shortages could start hitting the European Union, while Russia will probably feel much less of an impact.

It's a comedy, really...
The main thing is that we have demonstrated our strength and resolve to Putin...

briskdrifter3 said:A tragicomedy of sanctions.
As a direct result of these sanctions, the various branches of Russian banks operating within the European Union will take the brunt of the damage—while the central headquarters back in Russia continue to function without missing a beat.
Gas prices are poised to skyrocket across the European Union, whereas in Russia, they’ll likely remain quite affordable...
Food shortages could start hitting the European Union, while Russia will probably feel much less of an impact.

It's a comedy, really...
The main thing is that we have demonstrated our strength and resolve to Putin...

Oh, for sure. And let's not forget how the Russian currency is probably going to gain strength against both the dollar and the euro.

ruggeddriver70 said:What do you mean Alaska? Flights to the Middle East, South Asia, or Southeast Asia have always gone via Romania/Bulgaria, down through the southern Black Sea, northern Turkey, then hugging the Iraq-Iran border and the Persian Gulf to get where they're going. There aren't going to be any big changes there.

For China and Japan, they'll just end up doing layovers in Doha or Dubai.

I really think those folks over in the European Union are going to start circling back toward those old Cold War-era flight paths, at least in some capacity. I mean, that’s the plan, anyway—well, as much as it can actually happen, since a huge chunk of that market share has already been snatched up by ME3, not to mention all the complex airline alliances and those tricky codeshare agreements that complicate everything. It makes you think about history, because Anchorage ANC was such a massive deal back then; the airport was a popular refueling hub for long-haul flights during the Cold War, when western airlines were unable to access Russian airspace on routes from Europe to Asia. Now, everything feels so different, but you can see the patterns trying to re-emerge. It’s really interesting when you think about how a commercial hub actually functions, isn't it? It’s not just some sterile point on a map or a collection of buildings; it’s this living, breathing engine that drives everything around it. I was thinking about this earlier, and it struck me how much we take for granted when we talk about these massive centers of commerce. You have all these moving parts—logistics, people constantly flowing in and out, businesses setting up shop just to be near the action—and it creates this incredible momentum. It reminds me of how certain major cities in the States act as these massive magnets for talent and capital, pulling everything toward them like a gravitational force. It’s almost overwhelming if you stop to visualize the sheer scale of the coordination required to keep that kind of energy sustained! It’s all about those long-haul flights heading out toward East Asia.
The inquiries have already started rolling in!

Anchorage Airport said on Thursday that they’re already getting hit up by various airlines asking about their capacity and what kind of services might be available if international routes get disrupted because of the Ukraine crisis. It’s honestly wild how quickly things shift, isn't it? I mean, you look back at how this airport served as such a massive refueling hub for those long-haul flights back during the Cold War—especially when Western airlines couldn't exactly fly through Russian airspace on their way from Europe over to Asia—and it really makes you realize how much global tension dictates where we can actually fly. It feels like history is just looping itself, and suddenly everyone is looking at Alaska's Anchorage again to see if they can handle the squeeze. You have to wonder how many flight paths are going to be rerouted once the dust settles.

So, I just saw this report from Reuters, and it's got me thinking about how quickly things can shift, you know? Apparently, Anchorage Airport said on Thursday that they're already getting hit with questions from various airlines. They're all asking about capacity and what kind of services might be available if those international routes start getting messed up because of the Ukraine crisis. It’s wild to think about—one minute everything is running smoothly, and the next, the whole logistics chain is scrambling to figure out a Plan B. You have to wonder how much of a ripple effect this is going to have on global travel. It makes you realize how interconnected everything really is, especially when major geopolitical tensions start bubbling up like this.

Back during the Cold War, that airport used to be this massive, go-to refueling hub for all those long-haul flights, especially since Western airlines couldn't exactly fly through Russian airspace when they were trying to get from Europe over to Asia. (Reporting by Allison Lampert in Montreal; Writing by Jamie Freed; Editing by Jacqueline Wong)

I was just scrolling through Reuters and stumbled upon this piece about how Anchorage Airport said on Thursday it is starting to receive inquiries from airlines regarding capacity and available services in the event international routes are affected during the Ukraine crisis. It really makes you think about how fragile everything is, doesn't it? You know, the airport was such a massive refueling hub for those long-haul flights back during the Cold War, especially when Western airlines couldn't get through Russian airspace on their way from Europe to Asia, and seeing that history repeat itself in a different way just hits home. It’s wild to realize how much our global connections rely on these specific geographic spots, like how if things shift in Eastern Europe, suddenly an airport in Alaska becomes the center of attention for major carriers trying to reroute their entire operations! I mean, can you imagine the logistical nightmare for the airlines? One minute you're flying your standard routes, and the next, you're scrambling to secure fuel stops halfway across the world because certain airspaces are suddenly off-limits. It’s honestly pretty intense when you stop to process the scale of it all.

You know, looking back at how things used to work, Russia used to pull in something like half a billion dollars a year just from Europeans flying over Siberia, which basically acted as a massive direct subsidy for Delta Air Lines. Their landing fees were honestly some of the highest you’d see anywhere in the world, and they weren't shy about using the threat of a ban to keep everyone in line, too. It was wild how much leverage they held!

Carl Lee27 said:I really think those folks over in the European Union are going to start circling back toward those old Cold War-era flight paths, at least in some capacity. I mean, that’s the plan, anyway—well, as much as it can actually happen, since a huge chunk of that market share has already been snatched up by ME3, not to mention all the complex airline alliances and those tricky codeshare agreements that complicate everything. It makes you think about history, because Anchorage ANC was such a massive deal back then; the airport was a popular refueling hub for long-haul flights during the Cold War, when western airlines were unable to access Russian airspace on routes from Europe to Asia. Now, everything feels so different, but you can see the patterns trying to re-emerge. It’s really interesting when you think about how a commercial hub actually functions, isn't it? It’s not just some sterile point on a map or a collection of buildings; it’s this living, breathing engine that drives everything around it. I was thinking about this earlier, and it struck me how much we take for granted when we talk about these massive centers of commerce. You have all these moving parts—logistics, people constantly flowing in and out, businesses setting up shop just to be near the action—and it creates this incredible momentum. It reminds me of how certain major cities in the States act as these massive magnets for talent and capital, pulling everything toward them like a gravitational force. It’s almost overwhelming if you stop to visualize the sheer scale of the coordination required to keep that kind of energy sustained! It’s all about those long-haul flights heading out toward East Asia.
The inquiries have already started rolling in!

Anchorage Airport said on Thursday that they’re already getting hit up by various airlines asking about their capacity and what kind of services might be available if international routes get disrupted because of the Ukraine crisis. It’s honestly wild how quickly things shift, isn't it? I mean, you look back at how this airport served as such a massive refueling hub for those long-haul flights back during the Cold War—especially when Western airlines couldn't exactly fly through Russian airspace on their way from Europe over to Asia—and it really makes you realize how much global tension dictates where we can actually fly. It feels like history is just looping itself, and suddenly everyone is looking at Alaska's Anchorage again to see if they can handle the squeeze. You have to wonder how many flight paths are going to be rerouted once the dust settles.

So, I just saw this report from Reuters, and it's got me thinking about how quickly things can shift, you know? Apparently, Anchorage Airport said on Thursday that they're already getting hit with questions from various airlines. They're all asking about capacity and what kind of services might be available if those international routes start getting messed up because of the Ukraine crisis. It’s wild to think about—one minute everything is running smoothly, and the next, the whole logistics chain is scrambling to figure out a Plan B. You have to wonder how much of a ripple effect this is going to have on global travel. It makes you realize how interconnected everything really is, especially when major geopolitical tensions start bubbling up like this.

Back during the Cold War, that airport used to be this massive, go-to refueling hub for all those long-haul flights, especially since Western airlines couldn't exactly fly through Russian airspace when they were trying to get from Europe over to Asia. (Reporting by Allison Lampert in Montreal; Writing by Jamie Freed; Editing by Jacqueline Wong)

I was just scrolling through Reuters and stumbled upon this piece about how Anchorage Airport said on Thursday it is starting to receive inquiries from airlines regarding capacity and available services in the event international routes are affected during the Ukraine crisis. It really makes you think about how fragile everything is, doesn't it? You know, the airport was such a massive refueling hub for those long-haul flights back during the Cold War, especially when Western airlines couldn't get through Russian airspace on their way from Europe to Asia, and seeing that history repeat itself in a different way just hits home. It’s wild to realize how much our global connections rely on these specific geographic spots, like how if things shift in Eastern Europe, suddenly an airport in Alaska becomes the center of attention for major carriers trying to reroute their entire operations! I mean, can you imagine the logistical nightmare for the airlines? One minute you're flying your standard routes, and the next, you're scrambling to secure fuel stops halfway across the world because certain airspaces are suddenly off-limits. It’s honestly pretty intense when you stop to process the scale of it all.

You know, looking back at how things used to work, Russia used to pull in something like half a billion dollars a year just from Europeans flying over Siberia, which basically acted as a massive direct subsidy for Delta Air Lines. Their landing fees were honestly some of the highest you’d see anywhere in the world, and they weren't shy about using the threat of a ban to keep everyone in line, too. It was wild how much leverage they held!

Exactly. And now, Delta Air Lines isn't getting any of that transit cash from flying over Russia, plus they aren't even allowed to fly into Europe anymore. An airline that was supposed to be a total cash machine is basically going to be stuck living off government handouts—kind of like how United Airlines or Amtrak have to deal with sometimes.

ruggeddriver70 said:Exactly. And now, Delta Air Lines isn't getting any of that transit cash from flying over Russia, plus they aren't even allowed to fly into Europe anymore. An airline that was supposed to be a total cash machine is basically going to be stuck living off government handouts—kind of like how United Airlines or Amtrak have to deal with sometimes.

Fine, go ahead with the financial sanctions, but this move is just plain stupid.

Either way, Russia and the European Union are just screwing each other over here—meanwhile, third parties who didn't join the flight ban are going to make a killing.

Their airlines get to take the cheaper routes and undercut Europeans on pricing. The Chinese will lead the charge, and from what I've heard, neither the Japanese nor the Koreans have put similar embargos in place.

Then you've got the Sultan and Dubai, who are going to rake in the profits from all of this. Even Europeans will end up lining Iran's pockets for transit rights, which is sure to piss off the hawks, AIPAC, and Israel.

wiredseal7 said:Fine, go ahead with the financial sanctions, but this move is just plain stupid.

Either way, Russia and the European Union are just screwing each other over here—meanwhile, third parties who didn't join the flight ban are going to make a killing.

Their airlines get to take the cheaper routes and undercut Europeans on pricing. The Chinese will lead the charge, and from what I've heard, neither the Japanese nor the Koreans have put similar embargos in place.

Then you've got the Sultan and Dubai, who are going to rake in the profits from all of this. Even Europeans will end up lining Iran's pockets for transit rights, which is sure to piss off the hawks, AIPAC, and Israel.

Actually, kind of good news for the European Union, considering Emirates is basically the biggest buyer of the Boeing 747.

ruggeddriver70 said:Actually, kind of good news for the European Union, considering Emirates is basically the biggest buyer of the Boeing 747.

They aren't making them anymore—but other models might still be worth watching.

btw, the Ruble bounced back and leveled out at 99.9 against the dollar. That's the extent of how the Ursuline freezing of the central bank assets works to stop an intervention when sanctions hit—basically, they'll probably try to crash things once those Eastern forex markets shut down, I guess.

Honestly, those Middle Eastern airlines have always been bigger Airbus customers than the Russians anyway—so this just speeds things up.

briskdrifter3 said:A tragicomedy of sanctions.
As a direct result of these sanctions, the various branches of Russian banks operating within the European Union will take the brunt of the damage—while the central headquarters back in Russia continue to function without missing a beat.
Gas prices are poised to skyrocket across the European Union, whereas in Russia, they’ll likely remain quite affordable...
Food shortages could start hitting the European Union, while Russia will probably feel much less of an impact.

It's a comedy, really...
The main thing is that we have demonstrated our strength and resolve to Putin...

Bingo...exactly that...it just feels like everyone sees it clearly except for the Americans themselves...it's kind of tragic.

briskdrifter3 said:A tragicomedy of sanctions.
As a direct result of these sanctions, the various branches of Russian banks operating within the European Union will take the brunt of the damage—while the central headquarters back in Russia continue to function without missing a beat.
Gas prices are poised to skyrocket across the European Union, whereas in Russia, they’ll likely remain quite affordable...
Food shortages could start hitting the European Union, while Russia will probably feel much less of an impact.

It's a comedy, really...
The main thing is that we have demonstrated our strength and resolve to Putin...

Right, because when you're under sanctions and basically at war with a nation of 40 million people, the economy has no choice but to grow and grow. Just straight to the moon, I guess. Even if it needs to.

Honestly, gas prices across the European Union have pretty much leveled out with what we're seeing on the global market anyway. That’s exactly why over the last few months, the EU has actually been pulling in more gas from the US than from Russia—basically, the US is shipping way more cargo over to Europe than they are to Asia right now. But here’s the real kicker, the actual bottleneck: we just don't have enough LNG terminal capacity in Europe to handle all the imports. It’s especially bad for Germany, where the infrastructure just isn't there yet. As for how fast we can fix that? I mean, let's be real, it's going to take a few years for sure.
And regarding that whole argument about food shortages hitting the West... man, I really don't know what to tell you. Sure, global prices are definitely going to climb, but this continent? We can afford to pay those higher costs without breaking a sweat. The ones who are really going to feel the squeeze are the much poorer nations.

Carl Lee27 said:Honestly, gas prices across the European Union have pretty much leveled out with what we're seeing on the global market anyway. That’s exactly why over the last few months, the EU has actually been pulling in more gas from the US than from Russia—basically, the US is shipping way more cargo over to Europe than they are to Asia right now. But here’s the real kicker, the actual bottleneck: we just don't have enough LNG terminal capacity in Europe to handle all the imports. It’s especially bad for Germany, where the infrastructure just isn't there yet. As for how fast we can fix that? I mean, let's be real, it's going to take a few years for sure.
And regarding that whole argument about food shortages hitting the West... man, I really don't know what to tell you. Sure, global prices are definitely going to climb, but this continent? We can afford to pay those higher costs without breaking a sweat. The ones who are really going to feel the squeeze are the much poorer nations.

The "logical" economic move here... right, because paying the Russians less would be such a disaster when we can just turn around and pay Americans five times as much...

Just some brilliant new economic profit formula... seriously, hats off to Europe... absolute A+ work there.

Does anyone know how many times Russia has had to step in to prop up the Ruble, and just how much of their reserves they've burned through to make it happen?
It looks like the slide finally leveled off after this morning, hovering somewhere around 100 to the dollar.

ruggeddriver70 said:What do you mean Alaska? Flights to the Middle East, South Asia, or Southeast Asia have always gone via Romania/Bulgaria, down through the southern Black Sea, northern Turkey, then hugging the Iraq-Iran border and the Persian Gulf to get where they're going. There aren't going to be any big changes there.

For China and Japan, they'll just end up doing layovers in Doha or Dubai.

At the end of the day, it’s a total mess. United Airlines basically said that flying to Japan—whether it's cargo or passenger service in South Asia—is absolutely killing their business. If they don't get flights back over Russia by May 3rd, United is pulling the plug. And who knows what happens to those massive planes they used for the Japan and China routes once they're grounded.

Right now, it's just a free ride for Japanese, Chinese, and other neutral airlines, since they can fly over Russia without any issues.

Germany is the only one that actually pushed the flight ban until May 3rd.

Sanctions are mostly going to hit Russia and Europe; it’s not like Russia is Sierra Leone where nobody in Europe would bother trading with them anyway.
America is happy as can be, and the defense contractors are loving it.

wiredseal7 said:They aren't making them anymore—but other models might still be worth watching.

btw, the Ruble bounced back and leveled out at 99.9 against the dollar. That's the extent of how the Ursuline freezing of the central bank assets works to stop an intervention when sanctions hit—basically, they'll probably try to crash things once those Eastern forex markets shut down, I guess.

It is the central bank's assets held abroad that have been frozen, not those within Russia. This morning, the Central Bank burned through 7 billion dollars just to stabilize the Ruble. One has to wonder: how much longer can they sustain this before they completely exhaust the reserves they actually hold in Russia?

FIFA is gearing up to drop its most massive sanction against Russian sports yet. According to the New York Post, the top European football governing body is expected to finalize the decision by the end of the day to kick out the last remaining Russian club from European competitions: Moscow's Spartak.

Switzerland has officially adopted all the sanctions agreed upon by the European Union.

Now Switzerland is freezing Russian accounts too.

Anthony Hill5 said:It is the central bank's assets held abroad that have been frozen, not those within Russia. This morning, the Central Bank burned through 7 billion dollars just to stabilize the Ruble. One has to wonder: how much longer can they sustain this before they completely exhaust the reserves they actually hold in Russia?

Nobody actually has a bunker filled with stacks of cash. My best guess is gold reserves, though even those don't necessarily have to be physically located in the country that technically owns them.

Generally speaking, most other reserves are parked "somewhere" in foreign nations (think government bonds, accounts in foreign banks, or even the holdings of other central banks), except that Russia has spent the last few years trying pretty hard to cut its ties to Western financial systems. Because of that, a good chunk of it is likely out of reach of any sanctions.

I suspect the West might have had control over maybe 50% of the Russian reserves until recently, though there are rumors they pulled some of that money out right before the invasion started.

It’s also a massive question mark how China will handle trade with Russia while these sanctions are in play. They seem to be playing both sides right now, and honestly, it looks like they aren't entirely sure what their own move should be.