At the start of the Ukraine/Russia mash-up the US did what we always do….imposed sanctions.
I have not been a fan of sanctions because I do not believe they are all that effect…… as I wrote in the past…..
I post this because of the news from this weekend….
Russia’s gas giant Gazprom is set to rake in 85% higher revenues this year, to around $100 billion, as natural gas prices surged following the Russian invasion of Ukraine and the significant cut to Russian pipeline gas exports to Europe, an analyst told the Financial Times on Friday.
By choking supply to Europe, Gazprom has driven natural gas prices three times higher than last year’s price, which more than offsets the lower volumes Russia is sending to Europe, Ron Smith, an oil and gas analyst at BCS Global Markets, told FT.
“You can make a solid case that Gazprom will earn more from supplying less gas,” according to the analyst.
The EU is looking to limit Putin’s revenues from gas, and European Commission President Ursula von der Leyen said on Wednesday the Commission would propose a price cap on Russian gas as “We must cut Russia’s revenues which Putin uses to finance this atrocious war against Ukraine.”
Also on Wednesday, Vladimir Putin threatened the West that Russia would stop supplying all energy products to Europe if the EU and its Western allies impose price caps on Russian oil and natural gas.
Several EU member states are opposed to the Commission’s plan on a price cap on Russian gas amid concerns that Putin would retaliate with a complete halt of all pipeline gas deliveries to Europe.
Sanctions do not always achieve the desired goal…..
If you are interested in more information then I suggest this post on IST…..
Now you know….
I Read, I Write, You Know
“lego ergo scribo”