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Russian revenues are being hit hard by the war in Ukraine

I haven't seen this confirmed anywhere, so for now I'll put it into the "interesting if true" bucket:

CNN reports that "Cheaper oil and Ukraine war are blowing a hole in Russia's finances," and that's based on official information from the Russian Finance Ministry. So it's certainly plausible that they're also cutting the budget. In any case, it appears that Western sanctions are hitting Russia harder than recent punditry has acknowledged.

26 thoughts on “Russian revenues are being hit hard by the war in Ukraine

  1. Displaced Canuck

    You have to think the Russian government is spending alot more than they thought they were going to. War is expensive especially when you're losing.

  2. Justin

    We could end Russia if we sent NATO troops. It’s worth the risk. We’re already at war with them. Might as well finish them off.

    MOSCOW, Sept 15 (Reuters) - Russia's Foreign Ministry said on Thursday that if the United States decided to supply Kyiv with longer-range missiles, it would cross a "red line" and become "a party to the conflict". In a briefing, Foreign Ministry spokeswoman Maria Zakharova added that Russia "reserves the right to defend its territory".

    Do it. Dare them to fight back.

    1. Matt Ball

      Holy shit. I see someone wants to die. Sorry you have nothing to live for except the fantasy of a big dick, Justin, but some of us want to live.

      1. Justin

        As another comment says…

        “The war in Ukraine is one of the most black and white, good vs evil, situations I've ever seen in my adult lifetime.”

        No one wants to die… least of all Ukrainians. I guess you are right; they should have just surrendered.

      2. Justin

        "fantasy of a big dick"

        You can assume bad faith on my part... this is the comment section on an obscure blog after all. But my outrage has nothing to do with fantasies.

        KYIV/KUPIANSK, Ukraine, Sept 16 (Reuters) - Ukrainian authorities found a mass grave containing 440 bodies in a northeastern city recaptured from Russian forces, calling it proof of war crimes carried out by the invaders in territory they had occupied for months. "Russia is leaving death behind it everywhere and must be held responsible," Ukrainian President Volodymyr Zelenskiy said in a video address overnight.

        I know... you don't care about them.

  3. Dana Decker

    I have been waiting for the sanctions to make an appreciable difference. Back in April we were told they would quickly have Russia on the ropes, definitely by Autumn. No importing of vital technology (chips, etc). And less selling to Europe. Their GDP takes a 30% hit.

    But then the story emerged that Russia was doing fairly well due to oil sales.

    Still waiting to see if and when Russia's economy shrinks big time.

    1. Spadesofgrey

      Oil is a weapon neither Russia or the Western powers could afford. So Russia floods Asia and the Iran deal shadow harkens.

    2. lawnorder

      The really important thing about the tech embargo is the way it constrains Russia's ability to produce the more sophisticated weapons. They can still build artillery pieces and "dumb" ammunition for them, but they can't even build modern tanks, much less fighter planes, cruise missiles, and all the other "smart" paraphernalia of modern war.

      Battlefield indications are that the Russian forces are being increasingly sparing in their use of high tech weaponry, indicating that it is getting scarce.

    3. TheMelancholyDonkey

      The "Russia was doing fairly well due to oil sales . . ." story never made any sense. It depended upon an extremely superficial understanding of what was happening. Selling oil for a lot of money only helped Russia so long as other countries were willing to sell them things they needed in exchange for that money. Russia's imports collapsed quickly after sanctions were imposed. That left the Russians sitting on a massive pile of cash, which cannot, itself, be directly used for anything useful.

  4. different_name

    > than recent punditry has acknowledged

    That part is easy to explain. Democrats are bad at war stuff, so we know it can't be working.

    And because so many prominent Republicans are in bed (literally and figuratively) with Russians, it isn't unpatriotic to root against the war, it is just a "both sides" thing so every American journalist is contractually obligated to respond with passive nihilism.

    I don't make the rules, just pointing them out.

  5. Leo1008

    The war in Ukraine is one of the most black and white, good vs evil, situations I've ever seen in my adult lifetime.

    This is one of those rare situations where there's just no good reason for American punditry not to unanimously condemn the evildoers and simultaneously praise the surprisingly competent job the Biden admin has done in helping to coordinate the effective international response against Putin.

    If the "recent punditry" is unprepared, unable, or unwilling, to repeatedly and emphatically assert the ruthless and evil nature of what Putin is doing in that part of the world (due to "both sides" journalism, corporate/republican ownership, or any other reason), then they're quite possibly doing more harm than good.

    One can only hope all the competition they're getting from substack might shake things up a bit, but one can only hope ...

    1. spatrick

      The war in Ukraine is one of the most black and white, good vs evil, situations I've ever seen in my adult lifetime.

      Agreed. There absolutely no reason to support Russia's violent aggression even out of some knee-jerk anti-Americanism increasingly common on the wings of ideology. Glad I don't reside there anymore.

      Noam Chomsky should go back to spoon-feeding Ted Kaczynski.

    2. MontyTheClipArtMongoose

      When the opposition party (GQP) is on the Muscovite payroll & likewise the ancom dirtbag bros & broettes of the red portion of the red-brown coalition, it serves to reason a substantial number of pundits will be agitating for Ukrainian capitulation to their Vladdy, Putin.

  6. cld

    China has told them they're not going to help. There's a story Chechen fighters are being placed in positions behind the Russian forces seemingly to fire on anyone trying to flee; a story that Putin barely survived being hit by an IUD or perhaps a small rocket about six weeks ago; all these Putin allies, and others in high places who keep falling out windows or otherwise found dead, suggesting tit-for-tat assassinations.

    There are musings that Russia could completely come apart, which I'm not picturing, but would it be a better place without Putin? Easily, but it can perhaps more easily get worse for quite a while before it can get any better.

      1. D_Ohrk_E1

        Remote detonation releases a flood of hormones, causing a blood clot and an eventual stroke. That time when he looked paler than usual?

  7. D_Ohrk_E1

    That is the only thing -- "if true" -- that has so far stuck out for you?

    Not the video of Prigozhin recruiting convicts, exposing the difficulties in finding Russians who actually want to fight in this war?
    Not the video of Russian lawmakers and pundits reasoning why war crimes are appropriate responses to being routed?
    Not the handful of local municipalities in/around Moscow that have petitioned for Putin to be removed?
    Not the peripheral consequences (Georgia calls for war with Russia, Azerbaijan attacks on Armenia, breakout of violence between Kyrgyzstan and Tajikistan, rising threat of a coup in Belarus) of Russia's severely degraded military force?

    I mean, at the very least you could comment on how China's not buying a lot of Russian oil (and natural gas) because it frankly does not need it as the shutdowns continue to take its toll on economic activity -- https://bityl.co/EPrw

    1. spatrick

      North Korea does need Russian wheat and gas but they're not going to pay for it if the Russians want their artillery shells. They will barter and thus no cash coming into Russian coffers.

  8. golack

    The fall in prices is relatively recent, though there are reports Russia has had to sell at a discount.
    As it stands, the average Moscovite has not felt much impact due to the invasion. The troops dying are mainly from outlying areas. Pandemic effects are lifting. McDonald's was replaced. Nationalism is on the rise and blunts the effect of losing other foreign brands, and Chinese companies are filling in the gaps to an extent.

    I came across a report (NPR?) of polls in Russia--they support both opening a new front and pulling out completely. Either is fine.

  9. Citizen99

    Kevin,
    Why do you have to keep telling us things that don't comport with the overwhelming media narrative? That's uncomfortable!

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