Unprecedented US and EU sanctions against Russia have had no impact on Russia’s oil exports or revenue. Who’s the beneficiary?
Reuters reports Russia Exports Almost All its Oil to China and India
Almost all of Russia’s oil exports this year have been shipped to China and India, Deputy Prime Minister Alexander Novak said on Wednesday, after Moscow responded to Western economic sanctions by quickly rerouting supplies away from Europe.
Russia has successfully circumvented sanctions on its oil and diverted flows from Europe to China and India, which together accounted for around 90% of its crude exports, Novak, who is in charge of the country’s energy sector, told Rossiya-24 state TV.
He said that Russia had already started to forge ties with Asia-Pacific countries before the West introduced sanctions against Moscow following the start of the conflict in Ukraine in February 2022.
“As for those restrictions and embargoes on supplies to Europe and the U.S. that were introduced… this only accelerated the process of reorienting our energy flows,” Novak said.
He said that Europe’s share of Russia’s crude exports has fallen to only about 4-5% from about 40-45%.
“The main partners in the current situation are China, whose share has grown to approximately 45-50%, and, of course, India…Earlier, there basically were no supplies to India; in two years, the total share of supplies to India has come to 40%,” Novak said.
Oil Demand Did Not Change
The numbers are believable. Oil demand certainly did not fall. All the sanctions did was force a shift in global supply chains.
There was a cost to Russia to shift supply chains, but there was also a cost to Europe and the US as well.
The increased costs meant a higher price of oil, for everyone.
Buyer’s Cartel Silliness
The number of economists promoting a buyer’s cartel to suppress the price of Russian oil (and only Russian oil) only was stunning.
I laughed at the idea when it was proposed on June 28, 2022 in A Laughable Explanation of the G7 Oil Price Buyers’ Cartel Emerges
The agreement, reached in the early hours of the third day of the G7 summit at Schloss Elmau in the Bavarian Alps, follows growing frustration among Western countries that their embargoes on Russian oil have had the counterproductive effect of driving up the global crude price. This has led to a situation where Moscow ends up earning more money for its war chest and where oil market reactions help drive runaway inflation.
The statement from the leaders ultimately identified this specifically as a preferred choice. “We will consider a range of approaches, including options for a possible comprehensive prohibition of all services, which enable transportation of Russian seaborne crude oil and petroleum products globally, unless the oil is purchased at or below a price to be agreed in consultations with international partners,” the statement said.
Root of the Stupidity
The G7 does not want Russia to sell any oil but if they succeeded, the price has to rise unless production picks up elsewhere or demand drops.
Rather than admit economic fundamentals, G7 leaders, especially Biden and Macron keep doubling down on dumber and dumber ideas.
Despite the obvious stupidity of the scheme, some prominent economists backed the idea.
Central Bank Buy-Ins
Treasury Secretary and former Fed Chair Janet Yellen signed off on the cartel idea.
Former ECB president Mario Draghi also pushed the idea.
Insurance Scheme Backfires
The next not so brilliant Western sanction scheme was to deny insurance to ships carrying Russian oil.
Russia responded by buying Greek ships and then transporting oil without insurance on its own ships instead of paying others. It unloaded oil in the middle of the night to large Chinese oil tankers.
Not having to pay for insurance coupled with using its own ships helped Russia’s profits even if the price Russia received was slightly smaller.
Sanctions Don’t Work Because They Create New Markets
On September 19, 2023, I commented Lesson of the Day: Sanctions Don’t Work Because They Create New Markets
Foreign Policy: “Since Russia’s invasion of Ukraine, Greece’s mighty shipping sector has continued to earn good money shipping Russian oil. But Greek shipowners have discovered an apparently even more lucrative source of revenue: selling the ships themselves to mysterious buyers linked to Russia. One publication has declared that a “Great Greek Tanker Sale” is taking place, and no price seems too high for a secondhand tanker. But the formerly Greek ships are entering a Hades-like shadow economy.”
Lesson Number Two
Countries, political leaders, and market makers act in their best interest.
It is in the best interest of Greek shippers to sell ships so they do. It is in the best interest of India and China to buy Russian oil and Greek ships so they do.
It is in the best interest of Dubai middlemen to make a market in ships so they do.
What this boils down to is simple: It is the best interest of middlemen in Greece, Russia, India, China, and Dubai to tell Biden to go to hell, so they do.
New White House Fact Sheet
Despite a perfect track record of failure, On December 22, 2023 a White House Fact Sheet explains Biden Administration Expands U.S. Sanctions Authorities to Target Financial Facilitators of Russia’s War Machine
Today, President Biden signed a new Executive Order (E.O.) that strengthens U.S. sanctions authorities against financial facilitators of Russia’s war machine. The E.O. makes clear to foreign financial institutions that they risk losing access to the U.S. financial system if they facilitate significant transactions relating to Russia’s military industrial base. The E.O. also provides authority to broaden U.S. import bans on certain Russian goods.
What did Biden Do?
He blocked diamond imports and seafood imports.
Yeah, like that will have Russia crawling on its knees. Is anyone buying Russian seafood now other than China?
Indian Envoy Meets With Putin, Bypassing Western Pressure
On December 27, the New York Times reported Indian Envoy Meets With Putin, Bypassing Western Pressure
President Vladimir V. Putin on Wednesday met with the Indian foreign minister at the Kremlin, highlighting Russia’s attempts to break through its isolation from the West by pivoting to an increasingly powerful Asian nation.
Despite the Biden administration’s efforts to make supporting Russia costly, American officials have avoided open criticism of India. Instead, President Biden and others have courted Mr. Modi, even welcoming him to a state dinner over the summer. That courtship has continued even after American law enforcement officials accused Indian officials in November of plotting the assassination of an American Sikh activist in the United States.
New Delhi is heavily reliant on Russia for the largest part of its arms imports and Moscow has helped India to build nuclear and space capabilities from scratch.
“Typically, defense, nuclear and space are collaborations you only do with countries with whom you have a high degree of trust,” Mr. Jaishankar had told members of the Indian diaspora in Moscow on Tuesday.
During Mr. Jaishankar’s visit on Tuesday, India and Russia agreed to the construction of future power-generating units of the Kudankulam nuclear power plant in southern India, which is being built with assistance from Russia. Construction on the plant began in March 2002. It is expected to start operating at full capacity in 2027
What Does Russia Need?
That question came up in response to my post There Were Zero Takers for Offers to Pay for Oil in Indian Rupees
Russia does not need gold. Russia needs PARTS! All kinds of parts, computers, microchips, cars, etc., anything it is not manufacturing.
Bonus Geopolitical Lesson
Russia especially needs computers and microchips. China and India need oil. Neither gives a damn, nor should they, about US sanctions.
Russia now gets parts from China and India in return for oil. Russia used to get parts from the EU and US. This is how badly sanctions have failed.
Here’s a flashback hoot from April 13, 2022: Janet Yellen Warns China on Russia and Creating a Bipolar Global Financial System
Hello Janet Yellen, who precisely was it that pushed China and and now India into Russia’s arms?
Both Trump and Biden believe they can set policy for the whole world. How has that worked out?
US sanction policy has not only failed, it has backfired. The biggest beneficiary has been China.
Liberals’ solution to everything is to enact some crazy “woke” policy and expect the whole world to respond by getting together and singing Kumbaya, then scratching their heads when countries don’t fall on their swords by following “woke” policies they don’t believe in that hurt them financially. Biden could have “won” the Ukrainian War before a single shot was fired by pumping oil as fast and furiously as possible, driving the price of oil down, LEGALLY striking Russia where it hurts the most… their pocketbooks. Instead, Biden chose “woke” eco-fascist policies, hundreds of thousands of lost human lives, hundreds of thousands of war crimes, spending over $100 Billion of US taxpayer Dollars all to make Putin stronger and richer, the US weaker and poorer, and the complete, utter annihilation of both Ukraine as a country and American credibility. Once again, Senile Joe make the exact wrong decision, keeping his 40+ year record alive and well.
Seriously this is a complete waste of time ….
This isn’t Rocket Science … it was over from the beginning ….
All Russia has ever had to do is take out Ukraine’s Power Grid.
Just like the U.S. did Iraq. Russia already controls Europe’s largest Nuclear Power Plant in Ukraine … no one talks about it but that was a major loss to Ukraine …
Like it or not … This has never been about taking over Ukraine … it has always been about sending message to the West that No means No NATO on their doorstep.
The West wants everybody to believe it’s otherwise … It’s Not !
The Problem is that the West seriously underestimated Russia’s capabilities and supporters and are now trying to find a way to withdraw without admitting defeat and losing face …
The West simply can’t afford the continued financial burden ….
Haha now putin has India by the balls instead of the eu. I wonder how the price cap is affecting russia more than barrel sold.
I think it was on npr there was a story about a guy who investigates where the drone parts come from. Basically they are using chips supplied 10 years ago.
Munitions from WWI still kill people in Belgium. What’s your point?
India by the balls? Really? You really think that’s what it’s about, replacing one adversary for another? Europe wasn’t Russia’s problem until the West lost its collective mind, and if you haven’t noticed Rogerroger, Russia STILL isn’t interested in antagonizing the West. Neither is it interested in subjugating other Asian nations. But you must be a typical American, one who thinks only in terms of conquest and domination. And NPR, the fringe arm of the Deep State propoganda machine? You’re citing them as a true authoritative source? Now that’s laughable. SMH. Happy New Year.
NPR, now that’s a reliable source of unbiased news.
And then there is this
link to rt.com
Yea . . . just like the West . . .
Russia’s chip industry is almost nonexistent. Russia’s manufacture of high-end chips is inexistent.
Russia producing 20 times the volume of missiles than Nato countries? If you are claiming that you better break it down by type because there are missiles and there are missiles.
Why would Ukraine salvage chips from downed Iranian drones when they can get better ones by picking up the phone and putting in an order?? Your statement doesn’t make sense.
Russia did have a decent space program inherited from the Soviets but Putin put in his cronies who ran it into the ground. By the way SpaceX has been ferrying Russian astronauts to the space station too. They are using the same systems as forty years ago and have fallen way behind in every metric.
The Kinzel hypersonic is just a small ICBM and not really special. Besides they are being shot down regularly by Nato-provided anti-missile system. Can you name any other Russian “cutting edge” weapons that are changing the battlefield? If they are there they don’t seem to be working as hoped.
You are way off on this . . .
You’re putting your emotions ahead of your logic.
Makes me wonder , how could fckn utterly deluded sick minds ever imagine they d manage to carve up and take advantage of the largest country in the world with on top a never seen before, admirable, popular, straightforward, reasonable leader !? A nation that beat the world in space travel, (before US’ fake moon landings that is), unlike the Shuttle Shit , astronauts never got killed with the Soyuz program ! And then all of a sudden our fckn idiots, fathomed that imposing sanctions on Russia would force them to dismantle fckn washing machines in order to move forward?… LOL …It is definitely time for the decaying west to bind its ‘powers’ , simply restrain and try to reach a fckn sustainable agreement with Russia before it is too late ! Tell me , are we really that fckn suicidal ? ! Looks like it for the time being ….Maybe Russia should ‘show’ something before we actually realize wtf is at stake ?!
Everyone is already assuming that Putin will “show” us but that has had the opposite effect than what Putin expected.
‘Than what Putin expected…’
How do you know?
If you threaten somebody you expect them to submit otherwise why threaten them?
Primate Behavior 101
That would explain the world encompassing sanctions regime by the United States.
Instead of befriending Russia and building a better future for humanity, a few neocons thought it was a good idea to overthrow Russia. This manichean, us vs them, ideology that drives the neocons is driving the the US into the ground. It’s time to throw all neocons out of power before it’s too late. They currently control both political parties of the establishment. They are now pushing for the US to get more involved with helping Israel (their number one concern). We are committing war crimes currently on behalf of Israel.
link to lobelog.com
I am not worried about Russia wining this war at all. The people who got them into this mess are still in power and still acting with their usual incompetence. Their main tactic is human waves to gain a few meters and all that does is hollow out Russian demographics. Putin’s Wunderwaffe are absent and Russia can’t make enough shells or drones so they have to go to N. Korea and Iran to get them. Their Black Sea fleet is getting hammered and can’t even fight back. They self-insure but wait till they have an accident and can’t pay. India and China are getting Russian oil at bargain basement prices so they get the margins at Russia’s expense. In the meantime Russia can get imports of vital components but at a much higher price and not in the quantities they need. Can you imagine the stating a war with an economy that has to import all the high-tech components their weapons need?
See my comment above …LOL incredible how fn ignorant you are…
Russia sent a grand total of 19 orbital launches this year. The US sent 116 in the same period. Not only that but the US has launched almost 85% of all the weight put into orbit. Russia is way way behind and is dropping even further. Fake Moon landings? You can see the landers with a telescope, but I suppose you have to explain away your county’s long list of lost opportunities by denying that others have surpassed you by far.
We are fckn Europe the great vasal of the fckn US of A, are we not ? Of course we are , till the very fckn destructive end !
I am detecting signs of stress in you. Could the way the war is going making you nervous? It was supposed to be over in a few days and now it’s almost two years and over three hundred thousand Russian casualties. Maybe Putin isn’t the genius the Russians claimed him to be.
if you are so well informed about Russian casualties, tell us about Whorekraine’s casualties too, it s your damn proxy after all , ain t it, you should know ! Lemme tell you though that for every Russian casualty you can count about five Whorekrainian ones! Some of my fanatic friends even say 1/10, but then they are fanatic …. just like you
You are doing the human waves and not the Ukrainians so the ratio of loss is very much in their favor. The Ukrainians are not running out of bullets or missiles.
…didn t know the land of Oz was near Paris…
OH No . . .
You are delusional, hysterical and factually wrong.
There are no 300k Russian casualties.
Mind you, every single casualty on either side is an absolute tragedy. Because of US meddling, instigation, warmongering and refusal to enter negotiations at the very beginning this war is still ongoing.
I truly think you’re the victim of the relentless propaganda, gaslighting and outright lies of the governments, media and talkingheads. Or, if not the victim, part of it.
Simon Hersh, John Pilger, Jeffrey Sachs all point out the unprecedented levels of propaganda by the establishment.
And when their reporting turns out to be true, they’re being demonized and cancelled. I think you know why. Telling truth isn’t allowed by the morally bankrupt establishment and their media.
I’m guessing you still think the pipeline sabotage was Russia’s doing? Or that Ukraine is winning? Or that there are no nazis in Ukraine? Or that corruption doesn’t exist in Ukraine?
A sane person wouldn’t take either side nor believe the propaganda or take part in the hysteria with Ukrainian flags and the other hyped up BS.
At the expense of ordinary people, corrupt politicians, media, corporations and big finance have made billions up to now.
And will continue to do so when the absolute destruction of this pointless war has to be rebuilt.
Only a complete idiot chooses a side and acts morally superior because he thinks he knows the truth.
Ukraine is by far the most profitable war since Iraq. Afghanistan wasn’t even close to break even. Libya was pretty much a total loss.
When what you launch is the size of an air fryer you have to launch a lot of them to make up the weight.
Why do Ukrainians complain that Russia is throwing 100 shells for each of theirs?Why are Ukrainian graveyards everywhere overflowing even after expansion, but Media-Zona can only find 38,000 Russian KIA compared to 400,000 UA KiA (not counting the MiA)Why are UA ranks full of 60 and even 70 year olds? Why are there thousands of videos about how they are press-ganging military meat on the streets, in hotels, restaurants, sports clubs, shopping malls, anywhere at all? If not because their 1.2 million man army is still running short of bodies?You are delusional !
I am glad you read the Russian news. They also say Europe has no heat and is starving this winter. Are you going to vacation in Crimea soon?
Thinking about Odessa in a year or two.
How can I read Russian news? It’s censored by law in the EU.
Media-Zona is an anti-Russian outfit, by the way.
UA casualties are easy: Just take the number they claim for Russian casualties.
If they say Russia is conscripting, it means UA is
If they say Russia is out of shells, it means NATO is
If they say Russia is out of missiles, it means the US is
If they say it’s a Russia PR stunt, it is a Western PR stunt
You can think all you want about Odessa and it won’t change the outcome. You can also use Stain’s tactic of accusing the opposition of doing what you yourself are doing and that will not change the outcome either.
Russia has RETAKEN all the territory Ukraine gained during their counter offensive and Russia has gained territory…
To many people are drinking the COOL AID being poured by the US MSM!!!!
I know someone in my town that only gets his news from CNN.
Imagine being that misinformed and hopelessly victimized by the propaganda.
Imagine not seeing the absolute contrast between the reality and what these clowns tell you on a daily basis.
Really, it’s painful to have a conversation with people like that. I truly feel pity.
I don’t want to take sides and it’s not even necessary.
But you’re completely correct on the fact that Russia can’t be beaten. They are fighting for their survival because the real objective is and was, regimechange and the confiscation of the natural resources.
So it’s completely legitimate to have some sort of understanding of the Russian side of things without cheering on the horrors of war.
Do the same graph with gas.
I think the next topic worthy of debate is the heedless push to steal Russian bank assets. No amount of warnings by level headed people seems to make any difference. More than that, the US is setting a trap for EU and the Euro in particular. Nearly all frozen assets are in Europe – so by ordering EU vassals to obey and steal, the US may wreck the Euro, to the dollar’s advantage. As a fat sociopath once said, “F**k the EU”.
Great comments!
Europeans have been betrayed by their politicians that serve unelected overlords in Brussels.
There is no denying that supranational entities have hijacked democratic processes in Europe. That there is and has been a policy of financial repression for 15 years and that the media is completely bought and paid for.
This continent is unrecognizable and the mood is rotten and foul.
The monstrosity that is the EU has colluded with America, NATO, WHO and of course, the WEF. This isn’t a theory, nor a conspiracy theory. This is fact.
America is now selling energy to Europe, Nato is pushing aggressively for expansion, the WHO pandemic treaties are being forced through EU parliaments and the WEF has infiltrated all of the EU nationstates.
Mass-immigration is a deliberate strategy and the societal impact of this is massive.
There’s no denying that either, is there?
We can debate which agendas are really behind all the chaos, but ‘Limits to Growth’ seems a fair assumption.
Make no mistake, this decade will be like nothing we’ve experienced before.
Every institution will fall in line with the increasingly more powerful and wealthy elite establishment while the majority will see lower standards of living.
But, as smart as these thieving elites think they are, they’re actually shooting themselves in the foot. Every other global power is now witnessing the true nature of the US and Europe. Why hold treasuries from countries that confiscate your holdings? Why have factories there when they’re being stolen. Why have businessrelations or any kind of relations at all with these utterly corrupt kleptocratic elites?
And this is the current state of a world on fire. This is literally the forming of a new world order where the East realizes that the West can’t be trusted.
India, China, Russia all know this to be the case.
Soon enough, the Ukraine hysteria will die down, the Israel/Gaza conflict will enter a new phase and eventually, China will become the next target.
I sincerely hope not, but a declining and collapsing US empire only has one more trick up their sleeves and that’s military power. Everything else either has collapsed or is in stages of collapse. Society, Academia, Democracy, Economy, Financial Institutions, social cohesion, etc.etc.
Excellent, couldn’t agree more!
All wars are bankers’ war.
Will the bankers agree to steal Russian money and give to Ukies?
I don’t think so. What’s the benefit of giving money to UKies?
If Ukies win the war, may be its worth to give.
If not, no reason to give. Nobody will trust European and US banking system.
Ukies will go down the primrose path the same as Iraq, Libya, Afghanistan.
Wanna drive the price of oil down?
Don’t mean to sound partisan but how about “drill baby, drill”?
Supply goes up, prices go down(everywhere) and Vlad the Impaler pockets less cash so he makes less war.
You would think Blinken, and Sullivan, and all the other DC nitwits would have this figured out.
What if they threw an oil party and nobody came because they were already drunk enough.
Anybody who is truly interested in exploring international affairs, and Russia in particular would benefit reading John Helmer, perhaps the last old-school investigative journalist. Old-school because he doesn’t move around making Youtube videos, but what he looses on visuals he more than makes up by erudition.
https://johnhelmer.net
True enough, sanctions are meant to be broken.
Well said Mish in both of your X replies. The Russians will build their oil carrying ships next. We’ve done everything possible to destroy a country (Ukraine), make Russia stronger, China stronger, improve relationship of Russia with India/China and make the world question why you would get too involved with the USA and West if they are going to dictate terms how to run your country and steal your reserves.
Putin wins-again. Our leadership is a failed leadership.
the best man SHOULD win ….and that s Putin …not ONE single mfr calling himself a leader comes even close to him….Long live Putin SLAVA ROSSIYA !
I founded and owned a High Tech Company. A guy, Sunil, was hired into the Marketing dept. He ended up being one of my best allies for an important reason (I was only in my 30’s, he was over 50 years old)….some context: he grew up SHOE-LESS on the streets of Mumbai.
He found his way to America, and got an MBA ultimately (20 years before I was in his Boss)…..so, I was only 18 years old and the guy had made his way to America and had proven himself with his Smarts.
Why was he my ally at work? Because he helped me to strategize in managing Employees and he said things to me such as: “You think too much like a Westerner.” And: “Man, you are dealing with ASIAN thinking. COME ON, wake up.” And: “These Chinese guys [suppliers] think in terms of DECADES and CENTURIES, Man.”
He was SO correct.
So, the context is that I learned that Sunil, a poor immigrant from Mubai, could easily out-think me at first. I LISTENED TO HIM, believed in him. He made me a better business man.
In the end, I have lost track of Sunil. He as a wonderfully smart foreigner who helped me understand Indians and Taiwanese, Japanese, and other cultures BETTER. It made me more money.
These cultures out-smart “normal American” thinking and problem solving. This is why America is falling behind. We THINK that we can out-smart India and Russia and the Greeks when in the end it is IGNORANCE of other cultures and how to think these problems through!
While some cultures did think in decades and centuries, it might not apply for today’s fast world. It is questionable if some higher force will dictate the next few decades. Forces of nature will deal with its one overgrown, pompous species.
Yes, Thanks, Maximus. Time will tell. Great comments here in this forum these days. THANKS!
the like is mine 🙂
“You think too much like a Westerner.”
I shall forevermore be in your debt for that.
Printed it and put it atop my computer display.
Iranian ammunition for Russian gold. Iran is beefing up Hezbollah for free. Iran might lack the capacity to support Putin, Nasrallah, the Hooties and the front with Israel. Iran is stretched too much. Yesterday the IDF killed 11 senior Iranian’s officers in Syria.
Million more willing to take their places…remember they only need to kill Israel once.
Do you think India is paying the same price today as they would if there were no sanctions? Stop looking for perfection
…and the thing is, this oil trade is not going to suddenly switch back from India to the EU… the EU essentially committed suicide with this single act of ideological idiocy and hubris, just like that scene from Blazing Saddles when the black cowboy holds himself hostage with his own gun to his own head.
India, unlike much of the developed world, has a growing population, and also has some English competence and tech competence, patchy, yes, but growing…
Martyrdom
“Here’s a flashback hoot from April 13, 2022: Janet Yellen Warns China on Russia and Creating a Bipolar Global Financial System”
One has to wonder why Yellen was incentivizing the creation of a Bipolar Global Financial System. Actions beget reactions. It’s not too swift (system) to think otherwise. But it is in the human nature of empires to do so.
Why, because Yellen is not too swift.
These people are delusional. I’m talking Yellen and Co. Why wouldn’t they create a new global financial system? The US is militarily surrounding Russia and China. Also, they are are constantly assaulting India with all kinds of demands and accusations. No, the world sees us for what we are.
The Founders of this country wanted a Republic, not an Empire. Unfortunately, the US politicians are controlled by corporations as well as being psychotics that are consumed by power. They allow our country to fall apart while trying to acquire and control foreign jurisdictions. Just sickening.
This is evidence of the decline of the position of the USA in the world.
The TWO largest populations – INDIA and China – ignore the Biden call to boycott Russia.
And the “boycott” FAILS – as does the image and global position of USA.
Having said all that, China and India lack innovation, rule of law/absence of corruption, their development is concentrated in some areas and almost nonexistant in others. Their education systems are weak but growing, R&D is growing, but their best leave and don’t return, the rest steal and don’t learn. They lack quality control and their wealthier citizens still buy and aspire to developed world quality products, as status symbols as much as to do with them actually working better. They don’t have domestic consumer markets anything like the US or EU, even if they are in decline; and nobody is going to buy and hold bonds of India or China. So yes, the US is weakening, but the gains outside are spread around and diluted, and there is no big Thucydides see-saw going on. So don’t get too carried away.
Sounds like typical American hubris.
You are either a glowie or just plain dumb. We had a President (a President!) murdered in 1964 and we still can’t information disclosed about responsible parties. Gimme’ a break with this garbage you spew.
True. Those folks still don’t understand how to treat people with variable sexual identities. And they don’t give away enough money to people that continue to be unhappy.
WE THINK that we can out-smart people. NO!
We THINK that we can OUT-GUN these countries? MAYBE?
But, where will that lead us?
DEATH.
“Despite the obvious stupidity of the scheme, some prominent economists backed the idea.”
It’s called Gaslighting. Is Paul Krugman one of the backers?
It doesn’t even require Russia to need parts and machinery. An easy 3 way trade of Russia selling India oil, India then settles payment by shipping machinery to North Korea and North Korea sends artillery rounds to Russia.
India wins by getting the oil it needs and markets for it industry. North Korea wins by having new machinery to make new shells for its stockpile while Russia wins by getting a huge supply of near expired shells cheaply to use against Ukraine-NATO and can then keep its own newly manufactured shells to replenish stocks.
Losers are the US, Ukraine and EU.
Can Biden do any more own goals?
Russia mass produces artillery shells. Why does it need N. Korea? You suffer from the delusion that Russia doesn’t have its own MIC. It does, and, it is out producing the West. Russia has a massive advantage in artillery and that translates into a massive kill ratio. Somewhere between 5 to 1 and 10 to 1. Ukraine has been destroy with nothing gained. Just another useless war brought to you by the evil neocons. Victoria Nuland should be singled out for crimes against humanity and put on trial and hung until her big blubberous body stops twitching.
I have no delusion about the excellent capabilities of Russias arms industries. They make more shells in a month than the US can in a year. But when you want to fire millions of artillery rounds to dominate the battlefield even the Russians cannot manufacture that many. So to replenish their stockpiles they have purchased from NK. They can then keep up the rate of fire using the old stock from NK. They also need to maintain a decent stock just in case Nato tries any stupid action.
Ukraine will either collapse from within with assassinations, coups or civil war, have the corrupt leadership flee with their loot ahead of any coup or collapse or agree to surrender on Russian terms.
Nuland ….the worst b$tch of all warmonging b$tches ….hope she gets teached a lesson at one point in her fckn b$tch life
taught… oc
yeah but quality control? you are treating junk made in cheap countries with precision engineering in expensive countries…
Don’t look now, Rinky, but America barely makes anything any longer. My motherboard Company out-sourced OUR MASTERY in engineering to Taiwan where we had the FABS and IC’s flowed on to our boards there because we did NOT have the Manufacturing facilities.
I also knew the Pres of AMAT and he agreed that back then, over 30 years ago, we had already off-shored ALL the best stuff to Taiwan and others.
So, RINKY, you might THINK you know something but I think your eyes are glazed over by misinformation and a lack of knowledge.
My company DESIGNED the boards (that was OUR know-how) but we off-shored the FAB work and most of the BOARD components were soldered (flowed) over in Taiwan. We then imported them and finish testing and QA’d the final products here in California.
Then we sold those finished boards to OEM’s. You lack knowledge is all. You are not STUPID but instead NOT KNOWLEDGEABLE about high-tech or weapons.
Our products were sold to the MIC (Patriot Missiles contained our boards) and were flown into Iraq in that war. In the meantime, Russia, China and the rest simply reverse-engineered all of that work.
NEVER under-estimate the Enemy.
IN OUR CASE, we are our OWN worst ENEMY!
You outsourced too much to Taiwan. I cannot count how many electronic industries rely on Taiwan. The chip factories being built in US for taxpayer money will have few domestic customers but MIC. The rest/most of the production will be shipped back to East Asia where the supply chain remains.
Don’t depressed too much. Your printing press is unique and working over time.
An almost universal political law is “government programs invariably produce the opposite effect as intended.” Russian sanctions have strengthen Russia’s economy and made it stronger. The US proxy war with Russia has made Russia military stronger and more of a threat. Europe is now weaker and more vulnerable.
But MSM still pedals the myth that Russia is running out of ammo and on its last leg. The most recent meme being peddled is that Russia is seeking back channel negotiations. Like clockwork we have multiple MSM outlets coming out peddling the same lie. Just wishful thinking on Washington’s part.
What the idiots in the Biden Administration don’t realize is that they have soiled their brand. Western leaders admit that they negotiated the Minsk Accords in bad faith. They were just buying time to build up Ukraine’s military. Now they’re threatening to steel Russian assets, a breach of international law. If the DC clown show wasn’t so pathetic and consequential it would be comical.
I totally agree with you way of looking at things. We are PETTY, arrogant, masterfully inconsequential due to our lack of understanding how to be a HEGEMON. We are making the same Mistakes as ROME, the Spanish, and the British made into our era. We will not last that much longer if we keep this us as other countries will quietly undermine our Hegemonic actions. It is hugely disappointing to see this happening, as an American.
It is embarrassing!
And what did the Spanish colonialism leave us… A bunch of dysfunctional Mexican countries.
What did the British colonialism leave us…A bunch of dysfunctional African and Asian countries
What did Roman colonialism leave us….Expresso and the leaning Tower of Pizza
The Post colonialism era is finding many of the areas starting to heal, at the chagrin of Colonial Mindset Nations. These former colonies want to have a life too. Repression by Racism, Nationalism, and falsely quoted and interpreted Biblical Quotations has exhausted its efficacy. Bombing Children in the name of Jesus is beginning to be an embarrassment to Evangelicals.
Russia accumulated Yuan up to a certain point, thereafter bartered with China.
Russia accumulated Rupees up to a point, thereafter bartered with India.
All the above without US Dollars
Putin got XOM, BP and MCD for free.
Our “leaders” care more about narratives and virtue signaling than rational and effective realpolitik. Thinking is hard, feelings are easy.
It was all by design. This started long ago and the seeds planted in the Maidan 4evolution.
Actually, this all started with the landing at Plymouth Rock.
Hey Mish, Thanks for being a beacon of sanity this year. Good to see someone pointing out the obvious stupidity of sanctions and endless wars.
I’ve never commented on your site, or any site for that matter. But I had to express my appreciation for your efforts.
Ken Goodreau
Thanks!
You are so Right Mish, Sanctions don`t work . . . but they sure look great to the Masses. . . the WEST has to be seen as doing something . . . The BIG Losers are EUROPE but they are mere Pawns in the Game and their Leaders sold out a long time ago . . . A major Economic / Financial Crisis which will tear Europe apart is coming soon . . . It which will dramatically reshape World Trade.
Guaranteed… how to profit from this impending disaster though?
And how much of this oil and oil products are then refined by India and re-exported to the EU
India pays Rupees for Russian oil. Russia accumulates 1 billion Rupees per month that Russia cannot use to buy anything of value. India has nothing useful to sell. Yet Russia must sell because Russia has no place to store the oil. Who profits from sanctions? India and India lone.
There are political benefits to accumulating (worthless) rupees in terms of one (very large) countries’ (India) goodwill and willingness to be put deeper under the thumb of the Russian dictatorship. Its like parents forgiving loans to a kid and expecting the kid to show up for Thanksgiving more often …
I am wondering if Russia could purchase businesses in India with the rupees, thus turning its rupees into more solid assets?
And enjoy navigating corrupt Indian bureaucracy?! lol
It would seem that Russians already have a lot of experience navigating corrupt government.
India does pose a problem. Russian need to develop a taste for Tikka Masala.
India lacks rule of law, independent functional courts, unfettered commerce, and stable currency. India does have property rights, security of self and property, and low taxes.
And they have curry and chutney.
“In recent years, India exported mostly: pearls, precious and semi-precious stones and jewelry (16 percent of total shipments); mineral fuels, oils and waxes and bituminous substances (12 percent); vehicles, parts and accessories (5 percent); nuclear reactors, boilers, machinery and mechanical appliances (5 percent); pharmaceutical products (5 percent); and organic chemicals (4 percent). “
link to tradingeconomics.com
India certainly is a dark horse… India is growing as China declines.
Perhaps India will manufacture drones and artillery shells.