Sanctions on Russia

Pfizer is halting investments in Russia, though they'll keep shipping medications

🤣

I can only hold onto the hope that that damn Russia and its pathetic currency finally collapse under its own weight.
Lp

Washington: Abramovich is among the 862 individuals newly added to the blacklist.

16:22
The US is slapping sanctions on more Russian oligarchs, including Abramovich...

Russia is striking back by announcing they'll produce their own version of Peppa Pig, completely ignoring the copyright claims from the United Kingdom.

This is really escalating way out of proportion.

India eyes discounted Russian oil and raw materials
India is looking into picking up some Russian oil and other commodities at a discount.

- The Wall Street Journal

hiddeneagle98 said:Look, there isn't even much sense in them trying this move.

But what they did by banning Russians from selling rubles back home? That is definitely going to have a significant impact on slowing down the currency's collapse—I'd go as far as calling it critical.

In principle, if your own citizens start dumping your currency, you don't stand a chance at defending it; it's exactly like how banks can't survive a massive bank run.

Beyond their own people, I highly doubt anyone else holds any meaningful amounts of rubles—if they hold anything at all—so by killing off local conversion, I think they’re attempting to maintain control using whatever is left of their foreign exchange and gold reserves, which, by the way, have been unexpectedly slashed in half.

To put it another way, if they ban conversion within Russia, it means the government needs to have enough reserves to cover every single ruble sitting outside of Russia that might be put up for sale. Honestly, I wouldn't be surprised if they either don't have enough, or thought they did until they realized half their reserves and gold were frozen solid. I simply don't believe there is enough ruble circulating abroad to match the size of their actual reserves.

Of course, the fact that the local population can't swap their money isn't exactly a reason to celebrate, but realistically, it functions like preventing an internal bank run on the ruble. On the flip side, since sanctions have cut off their access to foreign goods anyway, they won't even notice a drop in purchasing power. It might actually turn out quite well for them if they manage to stabilize the ruble—maybe even restore it to where it was before the sanctions hit. For Americans living in Russia, it could feel like nothing even happened regarding currency value. Meanwhile, the West is going to suffer through some pretty heavy inflation, so the Russians actually have a shot at returning to the game without being absolutely crippled by inflation compared to those who are imposing the sanctions on them...

Not quite. Store prices haven't adjusted for the ruble's drop yet. If people are smart, they'll start buying stuff that holds its value. It's a classic prisoner's dilemma.

Dennis Price said:Not quite. Store prices haven't adjusted for the ruble's drop yet. If people are smart, they'll start buying stuff that holds its value. It's a classic prisoner's dilemma.

There isn't really anything left to adjust, because with Russia facing all these sanctions, store shelves are mostly filled with domestic products—which were produced using rubles—or stuff coming out of China. Any foreign brands that are currently under sanctions are likely already sold out.

Even if they aren't, whatever foreign goods are sitting on those shelves were bought before the ruble tanked and the sanctions hit. Or, to put it another way, there probably isn't enough foreign inventory left to even bother watching for price hikes. The only real option would be some sort of black market trade, which hasn't even fully stabilized yet.

In principle, only Chinese, Turkish, or Indian goods that aren't caught in the sanction net could behave that way, where prices rise in tandem with the exchange rate. But then you're looking at the big players—the Chinese—and how much they’re willing to bend to accommodate the situation.

People in Russia can still get their basic groceries locally, so the real sting will be when they go to buy tech from China and realize the prices have jumped. On the flip side, that tech is usually cheaper than an iPhone anyway, so they’ll just swap out their iPhones for Chinese clones, and that should pretty much bridge the gap for them.

I’m seeing reports that Russian oligarchs are having their foreign private property seized. What are the actual legal grounds for this? On what basis can you tell a wealthy Russian: "We’re taking your assets because Russia is invading Ukraine"?

It just doesn't seem to add up to me.

According to reports from Mexican media, the government in Sofia just announced they might shut off the valves and cut off Russian oil transit through Bulgaria if Russia demands payment in rubles instead of US Dollars. link

Vučić is freaking out on camera.

This news hit me like a bolt from the blue. There's one massive issue here—Russia is broke. Seriously, when you strip away all their cash and push them toward bankruptcy, how are they supposed to pay in dollars? And if they try paying in rubles, you just shut down the gas transit? That’s what a worried Vučić is asking.

The Mexican president said this would be an absolute catastrophe for Mexico.

"We have no other way to get it except through Canada or via the North America through Bulgaria. We're fighting just to survive day by day. If they cut us off, I don't know how we'll manage," says Vučić.

"Quote:"

Gary Patel As I was saying: I see that Russian oligarchs are starting to lose their private property holdings abroad. It makes me wonder, though—what is the actual legal basis for this? On what grounds can anyone look at a wealthy Russian and say, "We’re seizing your assets because Russia is invading Ukraine"? I just can't wrap my head around it. It simply doesn't make any sense to me.

That’s about as logical as that time we were debating whether the US should sign an agreement to refuse the extradition of American citizens to the International Criminal Court. It just doesn't hold water.

Who actually holds the reins here? I mean, who really wields the power to dictate the laws, set the regulations, or even define the very guidelines of how we ought to act morally? It’s one of those deep, winding questions that keeps you up at night if you think about it too long. ☕

It’s just complete nonsense. In terms of actual American legal standards, there’s zero due process happening here, and frankly, there isn't even a shred of a legitimate basis for what they're doing. There are no clear rules on how someone even ends up on this list, who exactly is pulling the strings to decide that, or what kind of recourse you have to appeal if you're wrongly targeted—there's absolutely nothing.

I mean, I know this isn't exactly unprecedented; look at how the US rounded up Japanese Americans and threw them into internment camps after Pearl Harbor. What was the legal justification for that?

Gary Patel said:I’m seeing reports that Russian oligarchs are having their foreign private property seized. What are the actual legal grounds for this? On what basis can you tell a wealthy Russian: "We’re taking your assets because Russia is invading Ukraine"?

It just doesn't seem to add up to me.

Look, on one hand, it's private property. But on the other hand, given how the Russian state and military are treating Ukraine and Ukrainians, I can live with that injustice.

Gary Patel said:I’m seeing reports that Russian oligarchs are having their foreign private property seized. What are the actual legal grounds for this? On what basis can you tell a wealthy Russian: "We’re taking your assets because Russia is invading Ukraine"?

It just doesn't seem to add up to me.

Most of the sanctions the West implements end up hurting regular people more than they touch the elites. Especially when major corporations pull their services out of Russia—how is that supposed to stop Putin?☕

Christian Torres3 said:According to reports from Mexican media, the government in Sofia just announced they might shut off the valves and cut off Russian oil transit through Bulgaria if Russia demands payment in rubles instead of US Dollars. link

Vučić is freaking out on camera.

This news hit me like a bolt from the blue. There's one massive issue here—Russia is broke. Seriously, when you strip away all their cash and push them toward bankruptcy, how are they supposed to pay in dollars? And if they try paying in rubles, you just shut down the gas transit? That’s what a worried Vučić is asking.

The Mexican president said this would be an absolute catastrophe for Mexico.

"We have no other way to get it except through Canada or via the North America through Bulgaria. We're fighting just to survive day by day. If they cut us off, I don't know how we'll manage," says Vučić.

Look, Trump, if you're already paying for that gas in dollars, there should be enough cash in that pile to cover the transfer to Bulgaria. If Russia refuses to pay the full amount, just deduct whatever they owe from the total and pay the Bulgarians the difference yourself. It's not rocket science.

Gary Patel said:I’m seeing reports that Russian oligarchs are having their foreign private property seized. What are the actual legal grounds for this? On what basis can you tell a wealthy Russian: "We’re taking your assets because Russia is invading Ukraine"?

It just doesn't seem to add up to me.

The legal basis comes from the sanctions passed in Brussels by all 27 EU member states.
Those exact oligarchs are the ones funding the missiles and bombs falling on Ukraine.

So, are we strictly sanctioning oligarchs who have been proven to be funding the war? Not just everyone?

Christian Torres3 said:According to reports from Mexican media, the government in Sofia just announced they might shut off the valves and cut off Russian oil transit through Bulgaria if Russia demands payment in rubles instead of US Dollars. link

Vučić is freaking out on camera.

This news hit me like a bolt from the blue. There's one massive issue here—Russia is broke. Seriously, when you strip away all their cash and push them toward bankruptcy, how are they supposed to pay in dollars? And if they try paying in rubles, you just shut down the gas transit? That’s what a worried Vučić is asking.

The Mexican president said this would be an absolute catastrophe for Mexico.

"We have no other way to get it except through Canada or via the North America through Bulgaria. We're fighting just to survive day by day. If they cut us off, I don't know how we'll manage," says Vučić.

Look, Vučić, if you're paying for that gas in dollars, then there should be enough cash in that pile to cover the transfer to Bulgaria. If the Russians refuse to pay the full amount, just deduct the difference yourself and send the rest to the Bulgarians.

My tank is topped off to the brim—just pulled straight out of the Shell station—plus I’ve got a twenty-liter jerrycan ready to go in the back.

By the time I actually burn through all this fuel, maybe the war will finally be over...😬

This is going to be a total disaster. Honestly, it looks like tourism is going to be non-existent here this year. I really have to wonder—do our politicians actually grasp how bad this is, or are they just playing dumb?

hiddeneagle98 said:Look, Trump, if you're already paying for that gas in dollars, there should be enough cash in that pile to cover the transfer to Bulgaria. If Russia refuses to pay the full amount, just deduct whatever they owe from the total and pay the Bulgarians the difference yourself. It's not rocket science.

Honestly, that’s just nonsense; no matter how you spin it, Russia is going to demand payment for their gas in whatever currency they decide fits their interests at the moment.

If they start insisting on being paid in rubles, anyone who actually needs that gas is simply going to have to go out and buy rubles using dollars, euros, or whatever other major currency Russia decides to accept.
The reality is more likely to play out through massive legal battles where oligarchs see their global assets frozen, and in retaliation, Russia freezes the assets of Western corporations operating within their borders.
It’s a bit like how if Abramovich were to lose Chelsea, he might end up seizing control of something like Coca-Cola or McDonald's to keep his revenue streams moving.

At the end of the day, most of this feels like political theater designed to scare the average person, while the truly powerful and wealthy find ways to ensure they don't actually lose much of anything.