Anyone
who knows me, knows I like a ‘stat’ on pretty much anything in life. And Russia
is providing me with the ‘perfect stat storm’ at the moment. Here’s a belter to
get you started……
Oil
and gas energy represents 2/3rds of Russia’s exports (worth around $530
billion).
That’s
a big deal……a very big deal. In fact, Russia’s political and economic system is
dependent upon it. Public expenditure is almost completely supported by
energy-related revenues. In their absence, the Government would be increasing
its indebtedness by more than 10% a year!
The
thing is, you don’t need to go to war with Russia to prove your power and put
them in their place.
Firstly,
trade sanctions imposed to punish Putin for his Ukraine adventure make it all
the harder for Russia to trade the country out of its mess.
Secondly,
halving the price of oil by generating a massive oil supply (that’ll be the US
back Saudi’s!) hits them where it hurts.
Little
wonder then that the rouble has halved this year in line with the tumbling oil
price.
All
in all, what a Russian mess. Russia is leaking cash on a massive scale and it
is challenging to see how the hole can be plugged.
Gripping
stuff
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