Gazprom this morning reduced supplies via the Nord Stream to 20%. Gas in Europe is already at $2,500. This is almost 50 times more than in 2020. Good morning, idiots!
Gazprom is one of the worst performing stocks on the Moscow exchange.
Fact is, Russia needs Europe more than Europe needs Russia. The western Siberian gas fields have nowhere else to send the gas. They can't liquify it because they don't have the capacity, and the liquification plants use western technology. Russia will be lucky to keep the capacity they have operational.
Pipeline gas is not fungible. If you can't send it through the pipeline, you have to leave it in the ground. Before the invasion, 83% of Russian gas exports went to Europe, which accounted for 46% of European gas imports.
Europe will have a painful but necessary transition, and it will be a permanent shift. The US sent more LNG to Europe in June (5.5 bcm) than Russia did (4.3 bcm).
Before the invasion, Russia was sending about 11bcm/month. So it's about 35% today of what it was. Which is why Gazprom has lost about 60% of it's value since February.
You can't send it to China or India because first they don't want it, and second there is no way to get it there. There is no connection between the western and eastern Siberian pipeline systems. Russia doesn't have the money to build it, and China won't pay for it.
Russian manufacturing is at a standstill, autos are at about 25% and imports are zero. You'd think Russian automakers would be doing
better with no import competition wouldn't you?
Putin is destroying Ukraine
and Russia.
As the Russian invasion of Ukraine enters into its fifth month, a common narrative has emerged that the unity of the world in standing up to Russia has somehow
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