Jack Albrecht
2 min readJul 22, 2022

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I don't live or work in Russia (by choice) because I've known for ages that it is corrupt, and getting paid would be a crap shoot. So I can't speak to how it is doing business in Russia now compared to before the war.

Regarding your exchange rate issue I don't doubt you, but you miss the point entirely, and that covers most of your other points as well.

The sanctions are supposed to hurt Russia so bad they can't continue the war. Instead, Russia is making more money selling less oil and gas in 2022 than they did in 2021! Clearly the sanctions there are not working.

I live in Austria and work in oil and gas for 30+ years. Domestic gas needs are not guaranteed for individuals in Germany (we're doing a bit better here in Austria). They are not guaranteed at ALL for industrial users, the thought that gas from Russia could be cut off was leading to thoughts of a 20% market drop in Germany. Again the point is: Yes, Russia is suffering, but the West is suffering as much or more, and based on sales data since 24 February, it is crystal clear:

Russia can sell all its gas and oil without the west - but the west can't survive economically without Russian gas and oil. Ergo: The sanctions are not working.

Nordstream 1 is running again (since yesterday), but only at 40% capacity. Russia is making it clear who holds the cards here. It is Russia.

Again, Russia is suffering. 7-8% drop in GDP is serious, but it is only estimated to be a one-year drop! The destruction of Ukraine will last for decades.

The sanctions were supposed to crush Russia. Instead, they have shown that Russia can survive without the US financial system. It has also shown countries who don't share US interests what awaits them if they go against the US. BRICS is half the world's population, and they have sided with Russia.

Ergo: The sanctions are not working.

...and just wait until it starts getting cold in Europe.

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Jack Albrecht
Jack Albrecht

Written by Jack Albrecht

US expatriate living in the EU; seeing the world from both sides of the Atlantic.

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