3 ms·
Russia has just lost about 20-30% yearly income in these first months just from the oil price war. Saudis cannot care less because they have about three times
by lstodd 7y ago
Russia has just lost about 20-30% yearly income in these first months just from the oil price war.
Saudis cannot care less because they have about three times of Russia reserves nominally. In fact I suspect about five to seven times that, because Russia reserve structure is basically unknown. Saudis can certainly afford a year or three of having no income.
This is on top of the virus panic (which just cut any remaining tax revenues). Russia, Venezuela, Iran for that matter are done for.
EDIT: Which is why I think the whole OPEC+ deal went to the crapper. Middle East is able to weather this, others - not so much.
- chasd00 7y agoI hope this doesn't mean war. I have a feeling Russia will take out capacity by force if it becomes an existential threat.
- lstodd 7y agoNo it does not. There is no one in Russia able to execute such a decision. There were some people in 2008 maybe, but that was almost 12 years ago. Arguably there isn't anyone like this in the rest of the world either, but I digress.