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kstinfo t1_j1zqpop wrote

" Price caps on Russia’s crude and refined oil exports could force the Kremlin to cut output by between 5% and 7% next year "

I'm all for the sanctions but I don't understand this. Why wouldn't Russia increase exports to counter the lower price? It's not like any oil company is operating on a thin profit margin.

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Outrageous-Gur4824 t1_j20bmzh wrote

Have you ever been to Russia? The entire nation is riddled with the consequences of decades-long corruption and oppression. Their infrastructure is several (4-8) decades behind ours, depending on what sector of the economy and country you are looking at. It isn’t as easy as turning the taps more fully open.

There is a resins Russian jets downed in Ukraine were found with cheap commercial GPS units duct taped to their flight consoles.

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haysu-christo t1_j20tena wrote

>Why wouldn't Russia increase exports to counter the lower price?

Because price caps are enforced via restrictions on how oil is transported (tankers) and insured. They can probably bypass the price cap by selling to countries they have pipelines to but that's limited to 1 or 2. And when those two customers are full, then what?

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