
The graph at the top of this post is from Joe Wallace and Anna Hirtenstein’s report at the Wall Street Journal. It pretty much says it all but note the upper right hand corner. The TL;DR version is that increases in South Asian and Middle Eastern imports are compensating for decreases in U. S. and European imports:
Sales are booming in Russia’s export market, the world’s largest in crude and refined fuels. And new trade arrangements have given Mr. Putin cover to use natural-gas exports as an economic weapon against Ukraine’s European allies. Before the war, Russia supplied Europe with 40% of its gas. It has since throttled flows through the Nord Stream pipeline to Germany and other conduits, driving prices higher and putting pressure on European households and businesses.
Oil revenue more than makes up the difference. “Russia is swimming in cash,†said Elina Ribakova, deputy chief economist at the Institute of International Finance. Moscow earned $97 billion from oil and gas sales through July this year, about $74 billion of that from oil, she said.
The country exported 7.4 million barrels of crude and products such as diesel and gasoline each day in July, according to the International Energy Agency, down only about 600,000 barrels a day since the start of the year.
I presume that the increase in the price of oil means that the Russian can offer oil to Indian, Egyptian, etc. customers at a discount from market price.
If our strategy is to starve the Russian economy, it’s not working. It is, however, making the Europeans very nervous as winter draws near.






