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Basic economics say that Russia is a major commodity exporter and that as long as there is global demand for these commodities then Russia will have no problem

Basic economics say that Russia is a major commodity exporter and that as long as there is global demand for these commodities then Russia will have no problem selling them. It's like you don't understand how basic supply and demand works. India gets a great deal because it can buy oil from Russia at a slight discount and then resell it to Europe at a large markup. The loser here isn't Russia but Europe.

The_Colonel 3y ago
> India gets a great deal because it can buy oil from Russia at a slight discount and then resell it to Europe at a large markup. The loser here isn't Russia but Europe. You're contradicting yourself. India is selling at a market rate, so if there's a profit to make, it's coming from the Russian side. Pick one - either India has a big markup or Russia sells with only small discount. Both can't be true.
- yogthos 3y ago
  You're the one who said that India can suddenly import Russian oil much cheaper than before. So, using your logic India is selling oil to Europe at a markup. If Russia is selling to India at a small discount, then India is still making money directly at the expense of Europe.
  - The_Colonel 3y ago
    I'm happy to admit that India is making money as middlemen, that's exactly how the price cap was supposed to work. But given India is selling at market price, it's cutting into Russian profits. Indian profit is the same as Russian loss, so it's really silly to claim that Russian discount is "small" while India makes "big" markups.
    - yogthos 3y ago
      That's absolutely not how the price cap was supposed to work since India is buying at a higher price than the cap and we've seen repeated complaints from western officials regarding this fact. Again, as many articles I've linked show, there is no sign that this is cutting into Russian profits in any significant way/ However, it absolutely is devastating European economy. I'll reiterate my point since it clearly escaped you. The question is which economy is being hurt more relatively speaking. There is clear evidence that European economy is suffering and countries like Germany are now in recession. There is no such evidence regarding Russian economy.
      - The_Colonel 3y ago
        > The question is which economy is being hurt more relatively speaking. 2022 GDP growth: * Germany +1.9% * Russia -2.1% (according to Russia's agency) Yeah, evidence absolutely points to European economy getting hammered while Russia is better than ever.
        yogthos 3y ago
        now let's forward and see how things are going in 2023 https://www.cnn.com/2023/05/25/economy/germany-recession-q1-2023/index.html https://www.cnn.com/2023/05/25/economy/germany-recession-q1-... https://www.bloomberg.com/news/articles/2023-05-25/germany-enters-recession-europe-s-largest-economy-is-breaking-down https://www.bloomberg.com/news/articles/2023-05-25/germany-e... https://www.reuters.com/markets/europe/russian-economy-ministry-improves-2023-gdp-growth-forecast-2023-04-14/ https://www.reuters.com/markets/europe/russian-economy-minis... Evidence absolutely does point to European economy getting hammered while Russia is better than ever. I have to ask what your agenda is here given that you keep trying to pretend things that are obviously happening aren't happening?
        chrysler 3y ago
        >> while Russia is better than ever. In same fairytale, that may be so. In the real world, oil and gas revenue is 40% of Russia's federal budget and down -52% YoY as of April, so that's more than -20% from oil and gas alone gone before taking collapse of other exports and explosion of military expenditure into account. At this rate, we'll see a replay of 1998 soon.
        yogthos 3y ago
        In the real world Russia is making pre-war level profits of its energy exports. It's like you don't understand the concept of supply and demand, the need for the energy and other commodities that Russia was exporting hasn't magically gone away, and you can't just make these things appear out of thin air. The fact that so many people are unable to wrap their heads around is idea is just amazing.

The_Colonel 3y ago

> India gets a great deal because it can buy oil from Russia at a slight discount and then resell it to Europe at a large markup. The loser here isn't Russia but Europe. You're contradicting yourself. India is selling at a market rate, so if there's a profit to make, it's coming from the Russian side. Pick one - either India has a big markup or Russia sells with only small discount. Both can't be true.

yogthos 3y ago
You're the one who said that India can suddenly import Russian oil much cheaper than before. So, using your logic India is selling oil to Europe at a markup. If Russia is selling to India at a small discount, then India is still making money directly at the expense of Europe.
- The_Colonel 3y ago
  I'm happy to admit that India is making money as middlemen, that's exactly how the price cap was supposed to work. But given India is selling at market price, it's cutting into Russian profits. Indian profit is the same as Russian loss, so it's really silly to claim that Russian discount is "small" while India makes "big" markups.
  - yogthos 3y ago
    That's absolutely not how the price cap was supposed to work since India is buying at a higher price than the cap and we've seen repeated complaints from western officials regarding this fact. Again, as many articles I've linked show, there is no sign that this is cutting into Russian profits in any significant way/ However, it absolutely is devastating European economy. I'll reiterate my point since it clearly escaped you. The question is which economy is being hurt more relatively speaking. There is clear evidence that European economy is suffering and countries like Germany are now in recession. There is no such evidence regarding Russian economy.
    - The_Colonel 3y ago
      > The question is which economy is being hurt more relatively speaking. 2022 GDP growth: * Germany +1.9% * Russia -2.1% (according to Russia's agency) Yeah, evidence absolutely points to European economy getting hammered while Russia is better than ever.
      - yogthos 3y ago
        now let's forward and see how things are going in 2023 https://www.cnn.com/2023/05/25/economy/germany-recession-q1-2023/index.html https://www.cnn.com/2023/05/25/economy/germany-recession-q1-... https://www.bloomberg.com/news/articles/2023-05-25/germany-enters-recession-europe-s-largest-economy-is-breaking-down https://www.bloomberg.com/news/articles/2023-05-25/germany-e... https://www.reuters.com/markets/europe/russian-economy-ministry-improves-2023-gdp-growth-forecast-2023-04-14/ https://www.reuters.com/markets/europe/russian-economy-minis... Evidence absolutely does point to European economy getting hammered while Russia is better than ever. I have to ask what your agenda is here given that you keep trying to pretend things that are obviously happening aren't happening?
        chrysler 3y ago
        >> while Russia is better than ever. In same fairytale, that may be so. In the real world, oil and gas revenue is 40% of Russia's federal budget and down -52% YoY as of April, so that's more than -20% from oil and gas alone gone before taking collapse of other exports and explosion of military expenditure into account. At this rate, we'll see a replay of 1998 soon.
        yogthos 3y ago
        In the real world Russia is making pre-war level profits of its energy exports. It's like you don't understand the concept of supply and demand, the need for the energy and other commodities that Russia was exporting hasn't magically gone away, and you can't just make these things appear out of thin air. The fact that so many people are unable to wrap their heads around is idea is just amazing.