Europe paid off with Russia for stopping Nord Stream 2

20 May 2022

Talk of a tough EU embargo on Russian energy resources is still just a political farce for a public "talk show" during the meetings of the European Commission. At the same time, Western analysts from Citi predict that this year Russia will receive a record $100 billion in profits from exported gas alone. The thing is that the price of natural fossil fuels is growing, so that a significant decrease in exports to non-CIS countries is not reflected in income from the supply of an important energy carrier. This is reported by the publication Echos in the material of the columnist Vincent Colin.

As the analyst writes, European countries send more than $200 million to the Russian treasury every day. All funds go to Gazprom, despite sanctions, loud statements and embargo promises. And this means that the first round of the energy battle of the Russian Federation completely won, because even if Europe starts to take less, Moscow will still receive huge profits due to the increase in the cost of raw materials.

It is assumed that Russia's income this year for gas supplies to Europe will exceed 100 billion, which is almost twice as much as last year, when the cost of raw materials was already high.

- the French journalist believes.

He separately emphasizes that such a record revenue will be received only from the sale of gas and without taking into account income from oil, coal, and other fuels from Russia. Rising commodity prices are offsetting Moscow's decline in exports. The gross foreign exchange turnover remains and even shows growth.

Only by threatening to impose an embargo, but without doing anything, did the Europeans prove that the head of Russia, Vladimir Putin, had the upper hand in this situation.

Colin continues.

Moscow's victory is all the more valuable and indicative since the super profits from energy exports actually paid for the construction of Nord Stream 2. Having created an artificial “storm” and a crisis in the energy sector, the Europeans fell into a trap: they failed to redirect raw materials to the Ukrainian GTS. As a result, they themselves paid for the shutdown of Nord Stream 2. In this case, we are talking not only about construction costs, but also about the profit from operation.

In this case, from the point of view of the Russian Federation, nothing much has changed after the freezing of Nord Stream 2. The indirect task for which the main export pipeline was built has been achieved. Except perhaps providing gas to Europe. But Brussels is to blame for this.

Used photographs: JSC "Gazprom"

14 comments

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Offline Bulanov

Bulanov (Vladimir) 20 May 2022 09: 14

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As the analyst writes, European countries send more than $200 million to the Russian treasury every day.

What does this mean? that in a week you can collect money for a machine-tool plant? Why isn't it being built yet? In the USSR, in the 1920s and 30s, under the most severe sanctions, the government purchased equipment and technologies from abroad and built factories. Why can't they now? If they themselves cannot build a factory, then why not buy in China?
And salting, like cucumbers, foreign currency is dangerous. She could be banned again. We urgently need to spend it on the industrialization of our country!
1. Offline Bakht
  
  Bakht (Bakhtiyar) 20 May 2022 09: 36
  
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  It seems to me that a plant is not built in one day.
  Another problem lies precisely in these same 200 million dollars a day. If the calculator does not lie to me, then this is 12 billion rubles a day, which must be converted through Gazprombank. And specifically on the Moscow Currency Exchange. The dollar is steadily declining, which is already creating problems.
  Because of the sanctions, the currency is no longer so necessary. Import is frozen. Russia has a huge trade surplus. Imports have decreased, while export waivers have increased. It makes no sense to sell to the West for dollars and euros. It makes a lot of sense to sell for national currencies: China, Turkey, India are questionable.
  
  And the industrialization of the country, of course, is necessary. As well as raising the standard of living of the population.
  1. Offline Pivander
    
    Pivander (Alex) 20 May 2022 09: 47
    
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    As far as I understand the payment system, Gazprombank sells all the currency to different buyers on the stock exchange and then transfers rubles to suppliers. That is, the currency does not go into the "box". That is, it is not stored by suppliers in foreign accounts. Well, buyers of currency on the stock exchange, speculators, or private offices that need currency for trading activities themselves bear the risks of their savings in euros and dollars. Another thing is that it can be problematic to sell so much currency on the stock exchange, due to the fact that the currency is stupidly not needed in such quantities because of its surplus. So the ruble is growing. Because it's more in demand.
    1. Offline Bakht
      
      Bakht (Bakhtiyar) 20 May 2022 11: 30
      
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      That's the point. Importers do not need the currency in such quantities. The West itself closed trade relations. Well, why do you need cut green paper if you can’t use it? Another stupid proposal from the US is to ban the circulation of 100 dollar bills. This is for starters. And then to forbid to accept from Russia any dollars. After that, you can not be interested in the dollar exchange rate.
      But after all, payment for resources is considered perfect only AFTER the ruble equivalent is credited to the supplier's accounts!
      In general, I understand that sanctions are taken by completely inadequate people. I don’t know what schools they went to, but as they say, “I wouldn’t trust them with a cat either.”
      
      Necessary postscript. The capitalization of Yabloko, GDP, and other attributes of a liberal economy have sunk into oblivion. The world needs real resources and goods. Not lawyers and fancy gadgets, but bread, gas and essentials. And the sixth (or 15th place) of Russia in the world economic system suddenly became the first. Unexpectedly for fans of the liberal economy.
      And Elon Musk can build a rocket to fly to Mars, and inadequate people can still admire him. It seems to me that a hungry astronaut will not fly anywhere.
Offline Sergey Latyshev

Sergey Latyshev (Serge) 20 May 2022 09: 43

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The plant, they wrote - 1 billion bucks. 100 billion - 50 factories. with stock..

Instead, they write, a wave of bankruptcies and sales of existing factories began. 300 million, and you can buy a glass factory with a territory, there are several of them for sale in the south ... And build up the territory with haciendas ...
Offline k7k8

k7k8 (vic) 20 May 2022 09: 46

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Quote: Bakht
It seems to me that a plant is not built in one day.

But nothing prevents at least voicing the timing of the new industrialization.

Quote: Bakht
Another problem lies precisely in these same 200 million dollars a day.

And yes, the problem of having money in your wallet is much more pleasant than the problem of not having it.
Offline Jacques sekavar

Jacques sekavar (Jacques Sekavar) 20 May 2022 09: 48

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The EU is highly dependent on Russian gas supplies, the income from which in the Russian budget is about 7%, but by the end of the year they can inflict an equally strong blow to the Russian budget if they impose an embargo on the supply of petroleum products or greatly reduce them, and this is about 30% of the budget. At the same time, it should be borne in mind that they plan to refuse gas supplies selectively and gradually, and oil almost simultaneously. So it is not known who will suffer more and how the ruble will eventually behave. As for the increase in revenue from rising prices, so many different restrictions have already been imposed on foreign exchange financial transactions that it makes little sense to accumulate it so that it lies like a dead weight. and buying the right goods, technologies, equipment for it is also problematic - there are few sanctions and there are few who want to substitute them, and if they are, they will ask for a sky-high price
1. Offline k7k8
  
  k7k8 (vic) 20 May 2022 10: 41
  
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  I will allow myself to repost myself in the next topic (I hope the administration will forgive). Probably, it would be worthwhile to refrain from victorious reports for the time being. As world practice shows, the effect of the application of sanctions never manifests itself immediately. The economy of any state has some margin of safety. On average, to assess the effectiveness of sanctions, it is necessary to wait from 6 to 12 months in order to sum up some results, make the first analyzes and forecasts. So, let's wait and see. Of course, it is highly desirable that the slogan put in the headline of the material become a reality, and not remain an expectation.
  1. Offline Bakht
    
    Bakht (Bakhtiyar) 20 May 2022 11: 33
    
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    I agree. I have always said that the supply of resources to Europe should be stopped for 6 months. And then accept surrender. Practice has shown that I was overly optimistic. It took 2 months. The sanctions have already paid off. For Europe, deplorable.
Offline Vox Populi

Vox Populi (vox populi) 20 May 2022 11: 44

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To put it mildly, a controversial article containing questionable statements. Particularly strange is the statement that

that the excess profits from energy exports actually paid for the construction of Nord Stream 2.

First, as stated in a number of sources, the total cost of the project, including infrastructure in Russia, is about $30 billion. Secondly, is the resulting excess profit due to the "dead" SP-2, and not the conjuncture that has developed for other reasons, and if it had been launched, then there would have been no excess profit???
So I agree with the comments "Jacques Sekavar" and "vic". We already feel some negative results of the sanctions, and later the final clarity will come.
1. Offline Bakht
  
  Bakht (Bakhtiyar) 20 May 2022 13: 42
  
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  These 30 billion have already become a fixed idea.
  The construction costs of NS-2 amounted to:
  The land part on the territory of Russia is 10 billion dollars.
  Offshore $10 billion
  The land part in Europe is from 10 to 15 billion.
  
  Of these, Russia's spending is 10 billion on land (it was decided to use it for gasification of the North-West). So this money is not lost
  5 billion for the offshore part. It's frozen for now
  Everything else (15-20 billion) is the cost of Western companies. And they have already prepared claims to the European Commission.
Offline yakisam

yakisam (Alexander) 20 May 2022 16: 32

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What nice words :)
I just don't understand what they mean?
What does "Russia will profit" mean?
Who is "Russia"? What is expressed by what she "receives"? Who will spend it? Who decides what to spend?
Gazprom will receive currency from abroad. Which will remain with Gazprom. Which will never fall into the pocket of 130.000.000 Russian citizens. Which inside Russia cannot be spent (in principle).
By the way, it cannot be spent abroad either - "sanctions", that is, Gazprom cannot spend them on equipment, technologies, etc. No one will sell, and if they sell, they will not be allowed to import it into the country.
That is, the currency can be spent only on the purchase of luxury for ... well, I can’t blame anyone - it’s illegal :) And all of it will also be abroad.
That is, it may be "received", but not me and not us.
And so - nice words.
Offline dub0vitsky

dub0vitsky (Victor) 20 May 2022 20: 38

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Quote: yakisam
What nice words :)
I just don't understand what they mean?
What does "Russia will profit" mean?
Who is "Russia"? What is expressed by what she "receives"? Who will spend it? Who decides what to spend?
Gazprom will receive currency from abroad. Which will remain with Gazprom. Which will never fall into the pocket of 130.000.000 Russian citizens. Which inside Russia cannot be spent (in principle).
By the way, it cannot be spent abroad either - "sanctions", that is, Gazprom cannot spend them on equipment, technologies, etc. No one will sell, and if they sell, they will not be allowed to import it into the country.
That is, the currency can be spent only on the purchase of luxury for ... well, I can’t blame anyone - it’s illegal :) And all of it will also be abroad.
That is, it may be "received", but not me and not us.
And so - nice words.

In fact, in order to write something, you need to be literate. Know the letters and rules of word formation. To talk about finance, you need to understand what it is. Gazprom profits and your pocket. They are connected. The greater the profit for selling gas abroad, the lower the price of gas for us, the citizens of Russia.

The picture is already old, but for us the changes are cheap, which cannot be said about the damned. There, the pandemonium with prices is much more violent. Maintain the economy, subtract from the budget, you for benefits and retirement. Contain military expenses, pay the army, police, doctors, teachers, the Ministry of Emergency Situations .....
Offline vlad127490

vlad127490 (Vlad Gor) 24 May 2022 15: 21

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Russian crap liberals are looking for how to withdraw dollars to NATO, now they have been given a gift, you can sell 50%, soon all currency bans will be lifted.