Trade in War
102 comments
·August 28, 2025eru
usrusr
Was about to write roughly the same.
But it's much more than that I think: when the stuff you sell to the other side can easily be substituted, from another supplier, domestically or by changing to ways that get by without, where's the benefit of stopping trade? Those 0.5% the other supplier has been more expensive (if it even is, might very well have just been inertia keeping them buying from you) won't meaningfully harm their war effort.
kubb
The interests of individuals can be manufactured though!
eru
Sure, people react to incentives.
Btw, the interest of states aren't monolithic either, they are made of people after all. (That's why corruption can happen in the first place.)
Frieren
Most times that a country attacks another is a tragedy of the commons situation. A few people at the top will profit from the war even if most citizens from both countries lose because of it.
The country as its citizens does not profit from war. The country as its leaders sometimes it does, or at least it may do so in the short term.
hiAndrewQuinn
Two states are at war, and their constituent citizens are helping each other despite the war, and you imply that's the manufactured part? Heaven help us, we should all be so lucky if whoever's manufacturing that happens to improve their assembly lines a bit. Maybe they'll manufacture all of us being interested in no wars again, ever.
mattashii
I think what they refer to is that while the interests of the individual and the country almost never align, the government can work to align these interests; e.g. through tariffs on trading with that other country. By doing so, a country can reduce/remove the incentive to trade with that other country's individuals, thus aligning the interests.
ignoramous
> interests almost never align
When they do: https://en.wikipedia.org/wiki/Corporatocracy
awesome_dude
I'm with you - I always thought that when countries go to war they made it illegal for their citizens/companies to "trade with the enemy"
With the government of the day making exceptions as they feel fit
somenameforme
It's simple self interest. If you perceive trade as benefiting your interests (which, by definition, would imply not giving your opponent a meaningful edge in the conflict) then you trade.
It's the same thing that decides when wars end. Either side is free to surrender or withdraw at any point in a war. They continue fighting when they think that the result they can obtain (win or lose) in the future will be better than the result they can obtain in the present. They stop fighting when that no longer becomes the case, at least assuming non-insane leadership.
War isn't the end of relations. It's not infrequent that enemies today are allies tomorrow, or vice versa. Nobody ever knows what tomorrow holds, and history seems to love a nice plot twist.
nradov
You're ignoring the principal-agent problem. Even when national leaders aren't technically insane, they will often choose to continue fighting well past the point where it could possibly benefit their country because that suits their own personal interests. So they keep sending their citizens to die because there are no personal consequences.
seangrogg
The GP did not say anything about war continuing due to logical outcomes or nationally-motivated ones. Most wars simply are personal pursuits wrapped in convenient excuses.
calvinmorrison
Americans mental assessment of war is that it is an all out slog, you gear up the entire country and fight to the death. Of course, that image is changing as the US continues to engage in protracted conflicts in ponzi states like Afghanistan, Korea and so forth.
However - for older nations, especially european ones, war is another tool in the chest of diplomacy, and may not be viewed as 'all encompassing'. To understand that war is just another lever of power can help Americans make better sense of conflicts.
rho4
I for example do not understand how it can be possible that Ukraine transports Russian gas on its pipeline network. Not sure if that's still the case though.
Cthulhu_
They stopped on January 1st 2025 when the contract with Gazprom signed in 2019 expired, costing Gazprom / Russia an estimated $5bn / year: https://edition.cnn.com/2025/01/01/business/ukraine-russia-g...
It's a complicated one, but legally it's a civil contract; if the Ukrainian government decided to stop the gas flowing, both Gazprom and all the companies "downstream" would be in their rights to sue for breach of contract and/or causing gas shortages, costing the Ukrainian government billions.
And you could wonder why they signed the contract anyway given Russia invaded/annexed Crimea 5 years prior, but, it's a lot of money, and at the time it was still considered a civil contract I presume.
blackhaz
I am completely naive,l as I don't understand much in contracts, but wouldn't war effectively nullify those contracts? I mean, if a large proportion of your adversary's economy hangs by a simple piece of paper, I'd expect one to suggest them to go and wipe themselves with it.
roenxi
It doesn't take a war to do that, in peacetime governments can also manufacture reasons to just not do things - up to and including just changing the law. The main defence against that is that if they are going to do that later on they simply won't sign up for the deal, so we'd expect a government to honour anything they sign on with.
I'd imagine the logic goes something like Ukraine believes they are benefiting and Russia is too, but they aren't sure which side is gaining more from the movement of gas through Ukraine (which, note, in real terms is supporting the economies that are arming Ukraine). In that situation, the obvious thing to do is just let things play out as contracted. If it was obvious that Russia was gaining a lot more from the deal than they are then they'd just stop.
jcattle
Sure. War also makes Nordstream II a legitimate military target. You still have to weigh if it is worth it to risk your good relations with your allies over sabotaging infrastructure which is important for their national security.
awesome_dude
I'm speculating.. but...
The Ukraine needed (and continues to need) support from the buyers of that gas - the EU
The war has been going long enough, and the Ukrainian government would have made it very clear that thy would not be renewing the contract.. meaning that the EU had a chance to get their energy via some other route.
cdogl
I don’t think you are naive - it’s counter-intuitive. The political context is important: Ukraine is incentivised to portraying itself as a country that respects international law and norms. The fact of life is that this includes respecting civil contracts made in good faith. This moral high ground has a cost.
XorNot
Also because the gas itself went to customers outside Ukraine.
Ultimately the general public is capricious in its beliefs: cutting the gas off and causing energy prices to spike in Europe means someone will call for the head of whoever's nearest to blame.
Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons - though I'd say recent American political history shows what a mistake that is.
eru
> Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons [...].
I find this fascinating: the US is a net oil exporter so 'as a country' would benefit from higher oil prices.
But it seems in the US your average Joe who tops up his car at the petrol station has more political power than the oil industry.
awesome_dude
> Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons - though I'd say recent American political history shows what a mistake that is.
There's been a change in the administration (and therefore strategy) of the USA, which changed the way the game was being played.
I think that (almost) everyone that has actual skin in that particular game also knows that none of the agreements that any of them make are reliable for a long term (I saw recently that the Ukranians gave up the Nukes they had at the behest of the US government, and on the.. I don't know if it was explicit, implicit, or just assumed.. understanding that the USA would provide some sort of security guarantee (which, of course, has never materialised)
contrarian1234
Nor do I understand how Europe still buys gas from Russia.. in effect funding and prolonging the war. They seem to be playing both sides. Saying how horrible the Russian regime is, while directly giving it more money. And then giving weapons to Ukraine..
It seems completely morally bankrupt... If instead of Russia it was ISIS, would they still send money just so they have cheap gas? Like at what point would they stop? Do the Russians need to be impaling babies and goosestepping through Red Square?
I also don't understand why Ukrainians don't feel a deep sense of betrayal about this
myrmidon
> They seem to be playing both sides.
They are (arguably) playing for themselves first.
Actual EU action in this conflict has been pretty well aligned with citizen/voter interests in my opinion; this is not strictly a good thing, you could uncharitably call it "emergent unprincipled EU hypocrisy".
Many voters want energy safety, inflation to be kept in check and to minimize spending on foreign conflicts and national defense. Lots of Europeans agree with keeping Russian expansionism in check, but they don't really want to pay for it nor risk escalation.
Generally, sacrificing trade for ethical/moral reasons sounds like an easy sacrifice to make, but this comes at a real price (getting overtaken by "immoral" nations that don't, possibly ending with ethically worse global situations in the long term), and things like this get fierce opposition in a democracy where you have to balance ideology with the economical well-being of your voters (ideological voting is much more achievable if you can at least pretend that it aligns with economical self-interest somewhat).
To me, EU feet dragging in the Ukraine war is a bit sad but unsurprising.
Morality wise, I'd say several middle-eastern petro-states are significantly worse than Russia (non-democratic government, human rights violations at large scale epsecially against foreign workers), and trade with those has been going on for decades...
DanielHB
It is not that much different with the US policies in the middle-east. If anything EU is at least not supporting coups in pro-russian satellite states. But I think that is mostly because the EU can't operate at that level of intervention as a federation, it is up for individual states and that can get them into big trouble with the EU.
But yeah, it is not great look for democracies when they can't support good causes because it will cause harm domestically which leads to less votes.
nereye
FWIW, USA buys uranium from Russia, e.g. see: https://www.osw.waw.pl/en/publikacje/analyses/2025-06-18/rus...
themgt
Nor do I understand ... Saying how horrible the Russian regime is, while directly giving it more money.
It's nigh on incomprehensible when political leaders' actions contradict their words, since politicians are always truthful. It seemingly happens often but will remain forever a mystery.
maccard
> Nor do I understand how Europe still buys gas from Russia
Because the alternative isn't buying gas from somewhere else, it's not buying the gas. This turns a foreign war into a major major domestic issue.
firesteelrain
Can’t they just increase their imports from the US?
contrarian1234
I'd be curious to hear what Europeans actually think of it on the ground. Is it not a major domestic issue that your governments are funding a genocidal regime? Do people just kinda pretend it's not happening b/c it's inconvenient to talk about? Just kinda blush, say sorry, and carry on?
I don't really understand the psychology of it. Are people for instance actively trying to use less gas in their personal lives?
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bgwalter
The issue is complex. Now there is a US president who wants to control all energy supplies to Europe while still talking about new oil deals with Russia:
https://www.reuters.com/business/energy/us-russian-officials...
And wants to control Russian gas to the EU:
https://www.reuters.com/business/energy/us-investors-eye-str...
Nord Stream has been sabotaged, a huge US LNG deal was forced on the EU in the tariff negotiations. The US leased a corridor from Azerbaijan through Armenia to Turkey that could be a new energy choke point for fossil fuels from Azerbaijan or Turkmenistan (lots of natural gas) to the EU.
The EU is in a pretty bad position right now where it can be blackmailed with energy cutoffs not by Russia but by the US.
The Ukrainians can't feel betrayal because they have kept their own transit pipeline open until 2025, long after Nord Stream was blown up (allegedly by Ukrainians on a sail boat, see the recent arrests).
disgruntledphd2
> huge US LNG deal was forced on the EU in the tariff negotiations
It wasn't really, as the EU have no ability to make member states do basically anything around energy, so that clause accomplishes basically nothing.
poszlem
Because the alternative is energy prices spiking so high that governments would collapse under mass protests. Cutting Russia off overnight would mean blackouts, factories shutting down, and heating bills people simply couldn’t pay. That kind of chaos would destabilize Europe faster than any Russian offensive.
Europe can’t defend Ukraine by destroying itself.
ForHackernews
Because Europeans need gas to heat their homes and run their economies. They have rapidly built new LNG terminals to diversify away from Russian gas pipelines: https://www.cleanenergywire.org/factsheets/liquefied-gas-doe...
Morality has nothing to do with it, no democratic government will survive freezing its own people for some abstract principle.
contrarian1234
It's not abstract. The money goes directly to committing war crimes and the bombing of cities. Civilians are dieing as a direct result of their funding of the regime. As far as I can understand, it's not ambiguous that they have blood on their hands
mamonster
1) Because the transport fee that Gazprom used to pay to Ukraine was one of the safest rents in the (very dysfunctional) Ukrainian economy(the other being the Odessa port). If you really want to go that far back, the gas dispute in 2008-2009 is when things really started going bad between Russia and Ukraine.
2) Because this gas was needed in Europe.
I would go as far as to say that if there is any peace in Ukraine within the next few years then Ukraine will probably demand that if any gas goes from Russia to Europe it would go through Ukraine.
scyzoryk_xyz
Something worth adding and reading about is how the very existence of the European-Russian gas relationship has it's roots in German 70's and 80's realpolitik initiative that led to the pipes-for-gas contracts between Germany and the USSR. Neither the USSR not Russia had the internal industrial capacity to build this kind of infrastructure to begin with. The belief was that "they" would become reliant on "us". Who could predict that "they" would want to abuse "us"?
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scyzoryk_xyz
I believe it's in part due to the actual way the pipelines work - gas isn't simply piped into one end and out the other like fluid or switched on and off like energy systems.
Switching it off on one end would require storing it somewhere at the source and switching it off on the other could destroy the actual piping. You can't just "take" it from one and easily transfer it to another customer.
AFAIK it's the engineering but that other comment about neighhbors in Dubai is yeah
t1E9mE7JTRjf
Or how European countries have bankrolled Russia's invasion with billions per year (100b since the war started) in payments for gas. While paying lip service to optics announcing ever harsher sanctions - like freezing one or two bank accounts of irrelevant family friends of Putin.
Sadly war means western countries will keep printing money, while also funding the military industrial complex. For some, this is a goal.
lifestyleguru
Everyone involved and decisive are neighbours living in Dubai.
jiggawatts
You're thinking of HAMAS and co in Qatar.
lifestyleguru
Applies to both conflicts apparently.
xnx
I was surprised to learn the US is still buying fertilizer from Russia: https://www.npr.org/2025/08/27/nx-s1-5496336/despite-sanctio...
_trampeltier
The US still buys a lot more from russia. Also it seems like Exxon returning to russia was an important point inthe Trump / Putin meeting.
KaiserPro
I need to search for it in the FT archives, but I do remember them trying to quantify the amount of oil traded between the various rebels in syria and the syrian state.
At one point islamic state (or one of the similar groups) had either ownership of a few oil fields, or transit between them, and were actively trading petro chemicals with each other for a good while.
jcattle
I also find the last point which is teased in the article interesting: "States very infrequently get forecasts about the length of war right".
I can see why that happens, but are there any good counterexamples? Are there any conflicts that actually were as short as the initiating party expected?
nradov
The 1991 Gulf War ended faster than the attacking coalition forces expected. Only a few Iraqi military units stood and fought; most surrendered or retreated.
indigo945
The Six Day War took about as long as either side expected.
trash_cat
I think it would be better to ask why do states allow trading with the country your state is at war with.
talkinghead
I'll have to ask my friend Thomas Pynchon
pintxo
Because they are not atomic bodies?
lifestyleguru
Someone else fights, someone else trades, the elites from both groups from both sides cooperate. The groups of the opposite fighters less, the groups of the opposite traders more. The arrangement is mutually beneficial and cleansing. For anyone unimportant enough to read this comment - nationalism is the worst poison.
dude250711
It is very simple, people trading/deciding are not the same ones as fighting.
actionfromafar
I think you could fairly easily find examples when even the people fighting engaged in trading. The world is complicated and tradeoffs are made all the time.
MangoToupe
Meanwhile others sanction (or tariff) countries they're at peace with for no discernible benefit to anyone.
OKRainbowKid
War and peace live on a spectrum
dlahoda
so you say only nothing or harm to all?
victorbjorklund
Tariffs are a tax on your own population (no matter what Trump says). Which countries sanction friendly ally nations?
XorNot
I mean friendly nations can coexist with tarriffs structures perfectly amicably.
What's not normal is trying to use tarrifs the way the US is, and the frequency of their adjustment, as well as stated motivation (punitive rather then achieving any sort of strategic goal).
herbst
Switzerland has plenty of tariffs around farmed goods to keep our farmer market healthy. But it does indeed make products more expensive (and higher quality) and everybody here knows and most accept that.
victorbjorklund
Yea sure? Of course. If US wanna tax their own population for imports it's fine (just like most countries have import taxes aka tariffs). But my question was about sanctions.
hdgvhicv
It amazes me how the right wing in America is so pro Russia
MangoToupe
I actually had Iran in mind. Russia at least ostensibly behaved in a way that's worth sanctioning by destabilizing the world. Iran just held some hostages 50 years ago, as best I can tell, and it's hard to be angry at that. Israel has harmed many times more Americans than Iran has, but Israel also seems to be the reason we continue to sanction Iran. It makes no sense on the face of it.
stevenwoo
The reveal of much of the right wing influencer network being funded by Russian state actors makes this more understandable. https://apnews.com/article/russian-interference-presidential... It goes from bottom to top with Tulsi Gabbard parroting Russian talking points on Russian state TV then from the White House and now those right wing influencers repeating Russian talking points at White House press conferences. It's probably the most successful adversarial state sponsored social engineering effort ever.
Interesting topic.
Though keep in mind that it might be states being at war with each other, it's usually (but not always) individuals or companies that are trading.
The interests almost never align.