How does giving physical resources for nothing physical in return help Russia? If anything Russia will wind back on Oil and Gas production and redeploy those workers to repairing and enhancing the war machine. What the arbitrary and childish 'cancellation' of foreign reserves has shown the 4/5ths of the world not in the thrall to the USA that holding foreign money isn't really a good idea and that they really need to get something concrete in return.
Hopefully that something will be investment goods rather than shiny yellow metal or hash algorithms.
That's even though the Russians have cleverly worked around the foreign reserve issue - effectively giving large foreign debtors a cheque drawn upon them and changing Russian law so that settles the debt (aka the 'legal tender' approach as the law works rather than Twitter believes).
What this bifurcation does is create two oil markets - Russian oil and non-Russian oil with the Russian oil at $80- per barrel and non-Russian oil at $150+. China has access to energy priced at a 50% discount to the rest of the world - which will show up in the cost of their goods, particularly their vehicle exports.
As far as Chinese mercantilism is concerned, we ain't seen nothing yet.
Hello!
I am Nusratullah from Afghanistan, I want to study for a master's degree.
I want your opinion on what to do?
How does giving physical resources for nothing physical in return help Russia? If anything Russia will wind back on Oil and Gas production and redeploy those workers to repairing and enhancing the war machine. What the arbitrary and childish 'cancellation' of foreign reserves has shown the 4/5ths of the world not in the thrall to the USA that holding foreign money isn't really a good idea and that they really need to get something concrete in return.
Hopefully that something will be investment goods rather than shiny yellow metal or hash algorithms.
That's even though the Russians have cleverly worked around the foreign reserve issue - effectively giving large foreign debtors a cheque drawn upon them and changing Russian law so that settles the debt (aka the 'legal tender' approach as the law works rather than Twitter believes).
What this bifurcation does is create two oil markets - Russian oil and non-Russian oil with the Russian oil at $80- per barrel and non-Russian oil at $150+. China has access to energy priced at a 50% discount to the rest of the world - which will show up in the cost of their goods, particularly their vehicle exports.
As far as Chinese mercantilism is concerned, we ain't seen nothing yet.