Re: Russian Gas ban - A problem for Europe or suicide for Russia?

Quote from: Sithara007 on Today at 01:57:24 AM

Quote from: pooya87 on May 07, 2022, 03:53:17 AM

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P.S. Funny how at least 10 members of European Union are currently paying Russia in Ruble (not even in Euros or USD but in Russian currency) to buy their gas and oil while they publicly say everyone else should stop doing it Cheesy

P.P.S. Russian Ruble is currently at its highest value ever since 2020. In other words their currency got stronger after they invaded Ukraine thanks to Europe Grin

The politics are so funny sometimes specially when you think about how Ukraine's regime was so eager to join Europe, in other words to join the same alliance that is currently helping Russia in reality while bashing it only in words...

Even more funnier is the fact that now Russia is earning more thanks to the sanctions. As a result of these sanctions and embargoes the gas prices have gone up by multiple times and the crude oil prices have reached a level not seen since 2014. They maybe selling less amount of oil and gas, but from these exports, they are earning more revenues. For the year 2021 Gazprom alone earned a profit of close to $21 billion (almost 20x higher than the level from 2020). For the year of 2022, the profits are going to be even higher.

This effect is temporary, as the reorientation of European Union countries away from Russian oil and gas towards other countries and alternative sources disrupts established supply chains, intensifies panic, and then raises the price. Everything will soon return to normal, and then, in the medium term, Russia will suffer enormous losses from which it will never be able to recover.

Yes, sanctions are not economically beneficial for the countries of the European Union now, but they understand that it is better to take such measures now, but to get rid of the long-term threat from unpredictable Russia.