The Russian gas giant Gazprom was a money machine for the last two decades, enriching many insiders and helping keep Vladimir Putin’s government flush. But that run has ended, with GazpromLike Gazprom, the whole Russian economy is beginning to crack under the twin strains of enormous wartime spending and withering sanctions. Since invading Ukraine in February 2022, Russia hasor hoped. That has been mainly due to skillful central bank management of the economy and robust oil and gas revenue.
Among Russia’s problems: Its national wealth fund, a pool of reserves Putin taps to finance the war, has dropped from $113 billion before the war to about $56 billion now. Not all of the $56 billion is liquid, and Russia needs to keep some money on hand for a genuine emergency. Russian President Vladimir Putin attends a meeting with Orenburg Region Governor Denis Pasler at the Kremlin, in Moscow, Russia, Wednesday, May 29, 2024. Sanctions, meanwhile, have weakened the value of the ruble and pushed up the cost of goods, especially imports. Russia’s central bank has tried to offset those problems by raising interest rates, with short-term rates
When buying Russian oil and gas, China demands discounts ranging from 20% to 50% off the market price. At the same time, there’s barely any new Chinese investment in Russia or any sign China is taking long-term economic risks for Russia’s sake. Another big step Biden could take would be lowering the price cap on Russian oil sales — currently $60 per barrel — and better enforcing it. Russia has found a variety of ways to evade the cap and has been selling oil for more when market conditions allow. Biden, for his part, has been reluctant to impose any sanctions on Russia that could raise prices in global markets and, crucially during an election year, at home.
Donald Trump Is Banned from 37 Countries as Convicted Felon, Including Major Allies Like Canada and U.K.Boris Sanchez and Brianna Keilar called out CNN commentator Paul Begala and guest Hogan Gidley for referencing both Trump and Joe Biden's bodies.
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