Friday, September 19, 2025

War and oil

Russia is fighting war the old fashion way; they’re fighting to win. They are bombing cities and killing civilians. They are taking over assets in their country owned by foreign countries. They are kidnapping Ukrainian children and taking them to Russia. Meanwhile the West is fighting war in the new more civilized way, which in the past would be considered an oxymoron. Russia is firing long range missiles into Ukraine including the city of Kiev while the West refuses to fire long range missiles at Moscow. The fear is that Russia would respond with tactical nukes. The West has declined to take the $300 billion in Russian assets sitting in Europe and the US and giving that to Ukraine, because it is illegal under international law, while Russia is breaking the law by seizing Western assets in Russia. It is the flow of oil money that is financing the war for Russia and Trump is using the threat of tariffs to force India and China to quit buying Russian oil. The G7 group set a price cap on Russian oil at $60 and this was recently changed to 15% below market price. China is buying Russia oil at the discounted price and reselling it on the open market at a profit. There seems to always be a way around sanctions. Trump has tried to negotiate with Putin for 8 months in an attempt to end the fighting and Putin talks a good game but just keeps on killing Ukrainians. It appears that the only way Putin will stop is by seeing the cost of the war exceeding the benefits. Recent polls show that 70% of the Ukrainian people want a negotiated peace settlement. Trump thought his relationship with Putin would help end the war but he was naïve, perhaps forgetting the Putin was just an old fashion KGB guy. As it stands now the EU is going broke trying to finance the war and the US is making profits selling arms to Europe while not risking any lives.

No comments:

Post a Comment