Sanctions Check - They're working. Next section.
Just kidding. C'mon apes, you know I won't let you off that easy. Sanctions, largely, are working to stress the Russian economy. But you know, nothing's perfect.
And that's why President Joey B is crashing the E.U.'s party this week. Eurozone leaders have been broing down all week in an attempt to "sharpen" sanctions against Putin and his squad, in the words of Ursula von der Lyon, President of the European Commission.
Still, it's Europe, so no one can agree on anything. Most notable, obviously, is sanctions on Russia's economic heart, aka, their energy sector. So far, just the U.S. and U.K. have totally banned Russian oil imports, while the E.U. struggles to get on the same page, thanks to a few countries' reliance on Putin's oil. Not to name names or anything, but looking at you, Germany, Italy, and Hungary!
Anyway, despite the somewhat lackluster sanctions from the E.U., reports indicate Russia's energy market is beginning to crack. First of all, the sanctions already in place are reminiscent of those imposed in Venezuela and Iran, both of which seemingly can't recover to pre-sanction production levels. Now that ports and bankers alike are turning their noses up at Russian oil, all signs point to a hard hit to Putin's petro production.
This was made especially clear by things like energy consultant Mikhail Krutikhin's commentary saying "this will set back the industry many years" and that it "means a loss of competitiveness." Keep in mind Russia doesn't simply make a lot of oil. They're totally reliant on the industry and supply ~10% of every single barrel of oil in the world.
If the E.U. does decide to follow the U.S. and U.K., both Russia and Europe are pretty f*cked. Euro states would need to find a replacement supplier quickly, likely turning to other not-so ESG states. Second, prices will skyrocket, even more so than they have, with some analysts suggesting prices could hit even $200/bbl - a scary thought for your commute.
But the most important thing for any sanction is, of course, time. Being barred from the global financial system isn't great at first but gets truly horrifying for your economy and the financial health of the average system if prolonged. Right now, the E.U. and U.S. are looking to close up some loopholes and extend sanctions in an even more painful way going forward.
At the same time as all this, key Kremlin officials are resigning in protest of the invasion and fleeing the country to avoid getting disappeared or being outright murdered.
Anyway, like some bartender told me last weekend after I spilled a beer on my check, "Go f*ck yourself," Putin.