April 1, 2022
VLAD WHO?:
Russia's transparently unworkable gas threat will fail abysmally (Paul Wallis, March 31, 2022, Digital Journal)
Russia is in no position to make demands. Nobody in the West is talking about ending sanctions at all, let alone anytime soon. Sanctions could and probably will go on for at least a decade. Oil and gas are the only working Russian major trade options except for trading with China. Oil can be eliminated as a revenue source simply by lowering the price.Russia, trying to maintain income and currency values and some sort of credible trading position, is at the mercy of these famously fickle markets. Oil futures look like there will be a progressive 20% slide in the next year or so. The futures market prices aren't set in stone, but they are a barometer of pressure on prices.That leaves gas as the other Russian income stream, and this market is even less reliable in terms of prices, with or without conditions on payment. Russia is not the only supplier of gas in the world. Germany is stuck with having to manage current needs, but that can change, pretty quickly when alternative sources are in place.
Posted by Orrin Judd at April 1, 2022 12:00 AM
