Russia's Hidden War Debt
60 comments
·January 12, 2025themgt
gitdowndirty
Why compare to 2023 data? there's 2024 data readily available. https://energyandcleanair.org/december-2024-monthly-analysis...
1.) there's no need to focus on barrels per day; fuel export revenue per day is more important. and from the link, we can see that it was around 1B EUR per day in 2022, and now it's around 600M EUR per day in Dec. 2024. Not great, but as we will see, it's mainly propped up by China.
2.) top 4 buyers of Russia fossil fuels in December 2024 are China, Turkey, India, and EU. China being top buyer is not surprising, given they are allied in the war - China is cutting off drones to Ukraine while supplying more to Russia.
3.) fossil fuel shipment departures from Russia has steadily declined from 80% in Jan 2022, to less than 20% in December 2024.
JumpCrisscross
> fossil fuel shipment departures from Russia has steadily declined from 80% in Jan 2022, to less than 20% in December 2024
What does No. 3 mean?
gitdowndirty
It means official Russian shipment of oil has decreased, but what takes its place is the growth of ‘shadow’ tankers. And that reduces G7+ shipping industry’s leverage over Russia. It's in the article linked above. Most of the shadow tankers have helped Russia's oil trade stay alive https://apnews.com/article/russia-sanctions-shadow-fleet-oil..., mainly due to Chinese entities. But recently EU has put more sanctions on China for that https://www.reuters.com/world/europe/eu-adopts-new-russia-sa...
The co-mingling of Russian and Chinese naval forces is also very evident recently, with the recent cutting of European underwater cable. Are Russia and China conducting undersea sabotage? | DW News https://www.youtube.com/watch?v=2ObgVV-HJtI
viraptor
From your first link: "However, Russian oil export revenue saw a $4.2 billion decline due to G7 price caps and a fall in global oil prices."
JumpCrisscross
To be fair, China’s oil demand tempered [1] and the IEA projected massive coming surpluses [2] in that time.
[1] https://www.energypolicy.columbia.edu/chinas-slowing-oil-dem...
[2] https://www.reuters.com/business/energy/oil-demand-set-peak-...
roenxi
There is a theme here - these predictions don't account for the existence of Asia. Chinese military planners have probably noticed that after it is done with Russia the US will be focusing on China. It is very favourable to them to fight the US in a proxy war rather than with Chinese troops. The resources the US is using to try to coerce Russia are probably the same that it will use against China, so if the US fails in Russia it may be exhausted of the ability to resist China.
If I were China's (one of the world's largest creditors, I might note) leadership then there is a pretty good chance I would backstop Russia's debt in this case just to see how badly it hurts the US. Bonus points that then there is financial leverage over a resources superpower who's resources are needed for China's industry.
JumpCrisscross
> if the US fails in Russia it may be exhausted of the ability to resist China
Russia exposed the West’s military unpreparedness. We’re correcting to the tune of trillions of collective dollars of defence investment.
> then there is financial leverage over a resources superpower who's resources are needed for China's industry
China already practically has this. That said, yes—the article’s analysis fails to account for a likely Chinese bail-out of the Russian banking system.
roenxi
The US started this war ~$30 trillion in debt, with the worlds largest military budget by a big margin. Colour me sceptical that billions more dollars will help. The US tried that, it didn't work out. Last I saw, the interest on the debt was higher than its military spending; from the peanut gallery it looks more like more spending will get them a classic over-extension and collapse.
The US wants to live in a backwards world where massive debtors can sustain wars indefinitely but creditors will get exhausted. It'd be great for them if that works, but I'd tag that sort of thinking as a big contributing factor in Trump returning to the White House. They don't seem to have the juice to pull a war with Russia off.
UltraSane
What is your preferred out outcome for the Russian invasion of Ukraine?
throwaway23812
Why are you testing loyalties? What roenxi does is the same speculation that is done daily by the U.S. state department and the CIA. It is tiresome in 2025.
roenxi
Well I suppose the ideal state would be that people conclude war is expensive and brutal then we enter a sort of global pacifist state. But if you want me to get myself in to trouble I'm happy to oblige because someone has to keep saying it:
1) Ukraine shouldn't have been stationing CIA bases and taking military aid from the US before the war. It was stupid strategy and eventually got them invaded.
2) They should have surrendered on day 1. That would have gotten them a bad deal but not so many people dying.
3) They should still surrender on day 1,050. That'd get them a much worse deal and they've suffered who knows how many 100,000s of casualties for nothing. But it'd at least be over.
4) If we extrapolate from the poor quality of the Ukrainian leadership's decisions so far the worst case is the other side of the coin flip on things like:
> The U.S. intelligence pointed to a 50% chance that Putin would use tactical nukes...
~ https://apnews.com/article/russia-ukraine-war-putin-biden-nu...
and there are a lot of deaths. I mean, hopefully Bob Woodward is a known liar because that is not a can of worms to open over questions like whether Moscow controls Kyiv. Many of us have lived in a world where Moscow controled Kyiv, it isn't that wildly new. While terrible it just isn't that big an issue. We've coped with the US invading multiple random countries in the Middle East, and while it is icky and unpleasant it is not as bad as the tactical nuke taboo breaking or something like the million casualties we're seeing in the Ukraine war from the West's policy of escalation.
wiseowise
At what price are they exporting it right now, remind me?
rasz
Predictions failed to take into account Bidens cowardice. Not only he didnt deliver lon range weapons in time, but intervened on behalf of russia when Ukraine build their own drones able to reach far away refineries. Even sanctions omitted main russian oil trading banks and shadow fleet until last week.
throwaway48476
If you read the WSJ article Biden hasn't been running things since at least 2021. The fault for the Ukraine war is almost entirely Jake Sullivans.
The American foreign policy establishment abandoned trumps deterrence policy which stopped putin invading in 2018.
threeseed
I actually think the current approach was a deliberate strategy.
Rather than help Ukraine quickly win the war they prefer to slow bleed Russia to help their aims in Syria, Iran, Taiwan etc.
nozzlegear
This directly conflicts with numerous firsthand accounts of the Biden administration, as reported by journalist Bob Woodward in his most recent book War. In his reporting, Biden is hands on and directly involved with foreign policy. In one account, Jake Sullivan's own wife listened in on a daily briefing call with the President and came away from it saying she wished the world could "see this version of the president," because he was so sharp and focused.
Regarding Ukraine, Biden was the one who made the decision not to get the US directly involved in the war. Sullivan even had to play devil's advocate in Biden's decision, because he and the CIA chief thought it was a horrible idea to announce to the world that we were committing to zero troops on the ground. One of Biden's biggest beliefs is that "great powers don't bluff," though, so it was important for Biden to clearly communicate the limits of US engagement in the conflict.
He wanted the Ukrainians to know (according to the reporting in the book) that the US would supply and support them, but the cavalry would not be charging over the hill to save the day. If some horrible event happened in Ukraine, he knew that his generals, the media, and the public would look to him and say "well, don't you think now is the time we should get American boots on the ground? Why aren't you acting?"
mft_
Could you share a link to the article, please?
Larrikin
Russia didn't invade until Trump left office because Trump was doing his best to weaken or destroy NATO.
entropyneur
I was waiting for some sensible explanation of Russia's "economic miracle" and this sounds at least somewhat satisfactory. Let's hope the theory is true and the debt crisis comes soon enough.
bgnn
There is the cost on Ukraine and EU too. Let's hope Russian economy collapse before Ukraine's support.
threeseed
The EU spending has brought a lot of benefits though.
Massive investment in domestic defence production, improved border and maritime security, disconnection of the reliance on Russia for oil/gas etc. All of which will be useful given the likely souring of the EU/US relationship over the coming years.
deactivatedexp
1984 babyyyy
Developerx
[flagged]
dragontamer
I don't think USA is dealing with 20%+ interest rates like Russia is. But go on, what about the USA nation debt is related to the issues brought up in this article?
snailmailstare
[flagged]
JumpCrisscross
> the US national debt grew rapidly when it made the mistake of directly invading countries instead of just financing partners
What does this refer to? We invaded Canada in 1812 [1] and Mexico in 1846 [2]. We’ve been “directly invading countries” for longer than we’ve been on fiat.
Debt:GDP spiked in WWII and then began a more-gradual increase from the 1980s [3]. Our debt has more-diverse causes than military spending.
[1] https://en.m.wikipedia.org/wiki/War_of_1812#Invasions_of_Upp...
[2] https://en.m.wikipedia.org/wiki/Mexican%E2%80%93American_War
[3] https://fiscaldata.treasury.gov/americas-finance-guide/natio...
Developerx
[flagged]
JumpCrisscross
> tell me more about 20%
They said they “don’t think USA is dealing with 20%+ interest rates like Russia is,” emphasis mine.
(Russian mortgage rates are around 30% for general population and 3 to 6% for “IT workers, families with young children and buyers in Russia's far east” eligible for state-subsidised mortgages, which comprise “70% of all mortgage loans” [1].)
> 85square apartment costs around 100k$, it's not a problem
That’s 7x average salary [2]. The equivalent in America is $440k [3]. That’s $1,300/sq ft, comparable to New York City [4].
[1] https://www.reuters.com/markets/europe/imminent-russian-rate...
[2] https://www.timechamp.io/blogs/the-average-salary-in-russia-...
[3] https://www.ssa.gov/oact/cola/AWI.html
[4] https://www.silive.com/data/2024/12/nyc-has-most-expensive-h...
wiseowise
> $100k in Russia in cash
> its not a problem
Look, mom, I’m trolling!
viraptor
https://en.wikipedia.org/wiki/Whataboutism
Just submit a story about it if you think it's an interesting topic.
peepeepoopoo99
[flagged]
shmerl
Better for whom, Putler and his paid bots?
Always useful to check past predictions from the author, e.g.
So, what would happen to those 6 million barrels a day if the West stopped buying? Russian officials have threatened to send it “elsewhere,” while the media have focused on stories of stepped-up sales to China and India. But this threat of a redirection to Asia is a paper tiger. - Apr 26, 2022
https://www.politico.com/news/magazine/2022/04/26/sanction-r...
Once sanctions are fully in place, Russia’s total crude and product exports (seaborne + land) could fall by as much as 3.3 to 3.9 million barrels a day from a baseline of 7.5 million barrels a day - Oct 19, 2022
https://navigatingrussia.substack.com/p/putins-looming-tanke...
Lots of convincing details and analysis about how oil would be stranded in Russia or forced to sell to the west at a deep discount due to the "price cap" strategy. So what are Russian oil exports looking like 2 years later?
Russia continues as a dominant oil exporter in 2023 despite global sanctions, maintaining a yearly export volume of around 7.5 million barrels per day (mb/d), as per analysis by the International Energy Agency.
With EU/UK/US markets turning away, Russia has pivoted towards India, China, Türkiye, and countries in the Middle East, retaining its position as the world’s second largest oil exporter behind the US in 2023.
https://qery.no/russian-oil-exports-pivots-towards-the-east/
According to the [IEA], Russian ... exports have remarkably steady around 7.5 million barrels per day (although there has been a big shift away from supplying the EU directly)
https://cepr.org/voxeu/columns/how-make-price-cap-russian-oi...