Cool, less gas production higher prices in Europe its just gets comical when all sanctions annihilate economies those who implement those sanctions and Russia just swimming in the ocean of money and after each round money just gushing faster
Sanctions may have harmed Russia’s credit-worthiness, but the 70% surge in world gas prices alone has supercharged its balance of payments. Its current account trade surplus, according to its central bank, is now over three times the pre-invasion level. At the same time, sanctions are clearly hurting countries in western and central Europe who are imposing them. Russia’s reaction to sanctions has been to threaten to cut off gas to Europe, further driving up prices to its advantage. It is already blockading the Black Sea ports, from which millions of tons of Ukrainian grain are normally shipped to the outside world. This blockade has seen cereal prices rise 48% on their 2019 base, devastating markets, particularly across Africa. This in turn has increased the value of Russia’s own massive grain exports. Russia has offered to lift the blockade if sanctions are lifted. Whether it means this is moot, but the west cannot be blind to the unintended consequence of its sanctions war. Six million households in Britain face the possibility of morning and evening blackouts this winter to maintain sanctions against Russia, as do consumers across Europe. This is despite Europe pouring about $1bn a day into Russia to pay for the gas and oil it continues to consume. This seems crazy. Proposals by the EU to halt the payments are understandably being opposed by countries close to Russia and heavily dependent on its fossil fuels; Germany buys 12% of its oil and 35% of its gas from Russia, figures that are much higher in Hungary. The objective – to compel Russia to withdraw its forces from Ukraine – has patently not been achieved. Military aid has been far more effective in that respect. But the harm done to the rest of Europe and the outside world is now glaring. The EU should stick to helping Ukraine’s war effort and withdraw economic sanctions against Russia. They are self-defeating and senselessly cruel. https://uk.yahoo.com/news/eu-forget-sanctions-doing-more-150753727.html
European leaders reached an agreement late last night to ban Russian oil imports. That would come into effect by the end of this year. Initially, it concerns an embargo on oil imported by sea, which will ban two-thirds of all Russian oil. Including a Polish-German import ban, a total of more than 90 percent of Russian oil is withdrawn from the market. Oil supplied to Hungary and Slovakia via the Druzhba pipeline (the longest oil pipeline in the world) will remain outside the boycott for the time being. Tomorrow the ambassadors of the Member States will look into the details.
EU leaders agree "in principle" to ban 90% of Russian oil imports "In principle" means virtue signalling from the EU. And what about Gas imports, they didn't mention Gas.
So Russia is not swimming in money, it’s drawing down to a tune of about $1B per day. Everyday that pool gets more and more shallow. Russia has some time but they will be broke eventually and they will have little to no access to capital markets. The only economy under threat of being annihilated is the Russian economy. The global market was built by the west with various trade agreements and security guarantees. Russia was benefiting from access to it but Russia is not integral to it. The Russians can be excluded and the west will adjust. What the Russians need to do is build a new market - good luck with that, comrade.