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Cake day: September 12th, 2023

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  • Article forgets to discuss how a removal of sanctions due to withdrawing would help alleviate the economic crisis.

    That assumes sanctions would be quickly removed. Given the massive list of war crimes Russia has committed in UA I sincerely doubt many in the West are lifting sanctions before the offenders are punished - something Putin is unlikely to agree to.

    It is a catch22 because that gives him limited reasons to withdraw. Russia are very much in “crash through or crash” mode now because they see no way out and still hope the west will withdraw support.

    To answeryour question. Withdrawal of sanctions will remove some pressure points - improved revenue by being able directly sell fossil fuels and thus getting a higher price per barrel; ability to buy critical components such as aviation parts and ICs. Most importantly China will be able to buy significant major assets and invest (they’re avoiding overt help to avoid sanctions themselves)

    That will take significant time to make a difference though, the decimation of the workforce will still be an issue. Russia will become a Chinese serf regardless of whether they retain Ukrainian land or withdraw completely. Their economy is now in such a bad state their only hope is a rescue by China. One which will be priced at firesale “cents on the dollar” prices









  • Well, I’m with you on Putin can go get fucked. But I think you’re misinformed on the “petrodollar empowering Putin”.

    The dominance of the US dollar as the currency for settlement of international crude oil contracts advantages predominantly the US and secondarily countries with strong currencies in open exchange with the USD. It disadvantages weaker currencies and those with poorer trade terms with the US such as Venezuela and Russia now the latter has been cut off from the western banking system.

    Putin being forced to trade his crude in non dollar denominated contracts is one of the (several) reasons the sale price of muscovy crude is now significantly lower than the equivalent from other countries. (TL;DR the sanctions are working).

    China has long been lobbying unsuccessfully to break the petrodollar/USD as world reserve currency and failed so far.

    The major US banks are just agents of a (very successful) US foreign policy post WW2. They are indeed evil, but not for this reason