This is pretty huge. About half of Russia’s crude oil exports go to Europe. Losing 2/3rds of that market is a big hit to one of their staples.
@dave
Not really.
Russia is a self-sustaining coutry, so not being able to trade is not a real issue, unless it stays disconnected for at least a decade. (I would guess)
Russia is a self-sustaining coutry, so not being able to trade is not a real issue
Russia losing the ability to trade is doing massive damage to their GDP, and tons of Russians were employed by multi-national corps that have now pulled out of Russia. I can’t recall specific unemployment figures but I believe they were expecting something like a 20% YoY GDP shrink because of the sanctions and multi-nationals pulling out.
And it’s going to get worse because the end goal is to stop importing russian oil or gas entirely. The contraction is going to be painful.
@dave
Yes, but GDP is a ridiculously bad measurement of people being rich. All it does is say, how much they work.
All I'm saying is, that as long as nation has both food and energy covered, they are going to be OK, no matter how "bad the economy gets".
On the other hand, Europe is fucked right now...
