Russia & Economics.
Deputy Head of Eastern Europe & Eurasia Division.
German Institute for International and Security Affairs
@SWPBerlin
Picture: Tamek Kowalski
Der Handel zwischen Russland und China bricht gerade alle Rekorde. Für Moskau sind die 🇷🇺🇨🇳Beziehungen überlebenswichtig geworden. Aber nicht alles in der "grenzenlosen Partnerschaft" läuft gut. Mehr dazu in meiner neuen Studie:
👉
Personal view: Today, no country in the West should feel more responsibility for
#Ukraine
's security than
#Germany
. Consequently, Germany should do more than any other country to help Ukraine. Of course, we did some good as well, but we clearly weakened Ukraine's security. [1/3]
Two leading officials in
#Germany
's Economy Ministry are under suspicion of working for
#Moscow
, both in key positions for German energy security. They apparently had a very pro-Russian stance and even obstructed Habeck's policies in the last months.
According to a source in Aeroflot,
#Russia
will not return airplanes leased from European companies (more than 500). Trust in protection of property rights will disappear. Who will ever send any machinery to Russia again?
I'm really baffled by how little reporting there is on
#Olenivka
in Western news. In all likelihood, Russians locked dozens of Ukrainian POWs inside a building and then exploded an incendiary bomb inside. If confirmed, it is one of the worst war crimes of this century.
US military expert on
#Olenivka
: Judging from the available video, Russian soldiers most likely locked Ukrainian prisoners-of-war inside the building and then threw incendiary devices inside.
-We worked hard to keep Ukraine out of NATO.
-We denied Ukraine arms, even blocked others from doing so.
-We cooperated directly with Russia's military until at least 2014.
-We funded Russia's armament more than most.
-We helped Russia bypass Ukraine's gas transit (NS1&2).[2/3]
-But most of all, we were the last ones to invade, bomb and kill in Ukraine, and vowed "never again".
It is painful to see that other countries are stepping up more than Germany at this historic time. I hope that we can still change course. [3/3]
Why won't the Kremlin agree to a compromise in Ukraine? The answer lies in Putin's motives. Initially, it may have been imperialism and a desire to control Ukraine. That was bad enough, and difficult enough to stop. But after the full-scale invasion began, the motives changed.
So, liebe deutsche Medien, ihr könnt jetzt etwas richtig machen: Es wird "Referenden" geben, wie 2014 auf der Krim, die keine Referenden sind, sondern nur Vorwand für Annexion. Bitte nicht "Referenden" nennen, sondern "Fake-Referenden", und gar nicht erst Ergebnisse diskutieren.
"He wants to break the Ukrainians not at the front line, where that’s not proving possible, but by breaking the West's will to support them. The weak link in this war, potentially, is us."
Great interview with
@MarkGaleotti
.
The CEO of a publicly owned German energy provider, Stefan Schaller, went to
#Ukraine
to help
#Russia
with its annexation. The board of the company will have an urgent meeting on Monday to decide about his future.
A German "monitor" in occupied Melitopol tells Russian state media that he's impressed by the transparency of the "referendum"
(Russian state TV has been harping on about the large number of "international observers" present across the four regions Moscow is about to annex)
Why in the world should
#Putin
send us gas if we open
#NordStream2
? Some people still haven't understood: He wants an energy crisis in EU, because our
#sanctions
are crippling his economy and our weapons are defeating his army. He will not send any gas through any pipeline! 1/3
#Russia
cuts gas supply to Germany, France and Italy, on the day that Scholz, Macron and Draghi are in
#Ukraine
. Timing is no coincidence, but the underlying strategy is economics: Russia is cutting off gas gradually, thereby maximizing the remaining revenue it can still get. 1/3
Good news for European consumers: Natural gas prices have fallen by 60% since late August. German storages 94.1% filled. The goal of 95% that was earlier deemed "physically impossible" will be reached in the next days.
It's not just the "Berlin bubble": 66% of Germans want military support for
#Ukraine
to continue. Most of them want to enable Ukraine to recapture occupied territories by force, not just stop further Russian advances.
#TheBerlinPulse
Although it will take many more attacks on refineries to create a real gasoline shortage in Russia (and even then, Belarus has available capacities), it is an effective strategy for many reasons:
1.) A gasoline shortage would be a political nightmare for Putin, because it would..
Ukrainian drones reached at least 6 Russian regions today, after attacks were reported in 10 regions yesterday. Two more refineries were hit today, one in Ryazan and one in Leningrad Oblast.
Why does
#Russia
not simply turn off
#gas
, but instead comes up with complicated
#turbine
excuses? It is important for the political effect of Russia's gas weapon. A straight cut-off would rather unite and strengthen us, but the turbine illusion creates divisions. 1/3
In July 2021, Germany had finally succeeded in pushing through
#NordStream2
against the massive doubts of its allies. One year later, the pipeline is at least partially destroyed while Putin is threatening nuclear war.
Putin, with champagne: "Our military production is surging, we are making multiple times more weapons. Their (Ukraine's) resources are dwindling."
The West has to get its act together ASAP, otherwise there will be much greater celebrations in Moscow soon.
All companies in
#Russia
, including of course Western companies, are required to assist the authorities during mobilization. Unless Western firms immediately retreat from Russia, they become directly complicit in Russia's criminal war against
#Ukraine
- if they like it or not.
Es gibt - Stand heute - keinen schnellen Ausweg aus Russlands Krieg gegen die Ukraine. Wer an Verhandlungslösungen glaubt, unterschätzt das Desaster dieses Krieges völlig. Selbst eine Kapitulation der Ukraine wäre kein Ende, sondern der Beginn eines Flächenbrands. 1/3
Deutschland wird letztlich
#Leopard2
liefern, so viel ist klar. Es war auch schon im März 2022 klar, dass die
#Ukraine
sie irgendwann braucht. Was auch immer man von der deutschen Hinhaltetaktik hält: Dass die Lieferungen nicht wenigstens vorbereitet wurden, ist eine Katastrophe.
Stop saying "
#sanctions
are hurting us more than Russia".
#Putin
likes to tell this fairytale, and some have picked it up in the West as well. But here is how
#Russia
's and
#Germany
's GDP are expected to develop according to Central Bank of Russia/Bundesbank (forecast June '22).
Sometimes people in Berlin ask me, "But what are we going to do with all these new weapons factories when the war is over?" ->When the war is over, we will have to keep the capacities and build stockpiles. Unfortunately, this is the only way to deter Russia for the time being. 1/
Just in: New batch of statistics on the Russian economy in June 2022!
Output in June 22 compared to June 21:
Cars: -89% (a few more than in May)
Trucks: -40%
Washing machines: -58.4%
Fridges/freezers: -52.3%
1/
To the "compromise" proponents:
Russia "does not see diplomatic solutions for situation in Ukraine".
"There will be no peace without demilitarization and denazification of Ukraine".
Moscow has "changed its mind" on Ukraine's EU membership, now sees it like NATO membership.
The reason is that the Ukrainian military exposed the weakness of Putin's regime. Russia was humiliated on the world stage. Since then, it is not about domination: Putin needs to destroy Ukraine and humiliate the West because they openly challenged him and exposed his weakness.
One thing became absolutely clear after
#Putin
's speech on Monday, in which he denied
#Ukraine
's right to exist as a sovereign state: Any attempt to accommodate Putin's demands re Ukraine NATO membership would have been a huge mistake & could have never led to peace for Ukraine.
Putin hat keine konkreten Kriegsziele in der Ukraine. Er wird sich so viel unter den Nagel reißen, so viel zerstören, und den Westen so viel erniedrigen wie es eben geht. Es ist ein Rachefeldzug gegen aufmüpfige Ukrainer, übermütige Europäer und unnachgiebige Amerikaner. 1/
#Uniper
war auf dem "russischen Auge" komplett blind: Am 23.2 hat die Firma eine Einschätzung ihrer politischen Risiken veröffentlicht. Die eigene "exposure" wurde als "moderat" eingeschätzt.
Zwei bedeutende politische Risiken sind genannt. Dreimal raten - welche waren's? 1/
Niemals vergessen: Russland hatte das Gas längst abgedreht als Nordstream gesprengt wurde. Putins Großangriff auf die deutsche Energiesicherheit war bereits vollendet.
PS: Die Pipeline verläuft unter Wasser.
H/t
@joerglau
Ein Mitarbeiter von
#RT
fordert den Tod des in Minsk festgenommenen Journalisten
#Protasevich
, die Chefin von RT gratuliert
#Lukaschenko
zu seiner gelungenen Flugzeug-Entführung. All das: Wichtig im Hinterkopf zu haben, wenn es um eine Rundfunklizenz für RT in Deutschland geht.
Russia Today special correspondent in Minsk Konstantin Pridybaylo on Roman Protasevich’s arrest:
“To make it clear: Protasevich is a scum, a punk, a freak, a bitch, a c*nt, a motherfucker, he must die”.
Liebe Leute, das ist ernst, und zwar todernst. Wenn deutsche Maschinen in der russischen Rüstungsindustrie landen, dann können wir Russland auch gleich Waffen liefern. Wir brauchen da einen komplett anderen Ansatz, mit ggfs. sehr, sehr hohen Strafen. 1/
(PS: I haven't mentioned the experts who still talk about Russian security interests in the context of the Ukraine war because I find it hard to take them seriously at this point.)
Due to sanctions,
#Russia
is switching from Windows to
#Linux
. The government wants to force domestic programmers to convert their software. But there are doubts: Many systems will have to be rebuilt from scratch, and there are few Linux experts around.
Back on track:
#Germany
is heading into 2023 with
#gas
reserves close to 90%. We could manage an extremely cold January/February now. Storages may end up at >70% in March. Essentially, we are already solving the problem of next winter these days.
This explains why almost all experts on Russian domestic politics don't believe in the possibility of a negotiated settlement and are pushing for more support for Ukraine. They have become familiar with Putin's trademark cruelty over the years.
Ukrainian drones effect: Russian weekly gasoline production is down sharply, 14.3% below last year.
Chart shows 1,000 tons per week, source: MMI (Telegram).
Data source: Rosstat.
Putin can't let Ukraine get away with this. Throughout his time in power, he has carefully cultivated a reputation for destroying and humiliating those who openly challenge him. Crucially, this destruction must be a spectacle, shocking and demoralizing. Saving face is not enough.
Russia would love a pause in this war to replenish its ammunition stocks, produce more tanks, hire/train more personnel, and build even more fortifications in Ukraine. It's critical that Russia does not get that pause.
Konzert in Moskau, Solist der Band "Naiv" erzählt von dem Mädchen Mascha, dessen alleinerziehender Vater ins Gefängnis muss weil sie in der Schule ein Antikriegs-Bild gemalt hat. Saal reagiert mit "Scheißkrieg"-Sprechchören (frei übersetzt).
Солист группы «Наив» Александр «Чача» Иванов во время концерта в Москве вышел на сцену в футболке «Маша Москалева» и рассказал слушателям о преследовании семьи школьницы, сообщил «Медиазоне» читатель
Видео: «Медиазоны»
Ein russischer Kanal mit 300.000 Followern schreibt, in Deutschland hätten gestern 1,5 Millionen protestiert, gegen hohe Preise und Impfungen. Was habe ich verpasst?
Short reminder about what happened last summer:
1.) The last time Russia ever sent gas through
#NordStream
was on August 30.
2.) Russia then stopped deliveries (not sanctions, not Germany).
3.) Sabotage of the already obsolete pipelines happened 4 weeks later on September 26.
There is probably no good measure against it. I'm skeptical that embargo threats or price caps will get cheap gas flowing. Germany has built itself a trap, and it will simply have to pay the price for not diversifying away from Russia earlier. 3/3
There is no hard evidence at this point for espionage or corruption. So it is possible that they were acting out of conviction or personal sympathies for Moscow. Which is also not great.
Ich befürchte, in vielen Köpfen geistert noch die Hoffnung herum,
#Russland
werde schon von alleine aufhören mit dem Krieg. Nur noch ein paar Wochen gewähren lassen, nur noch ein Stück mehr
#Ukraine
opfern, und dann ist Moskau satt oder ermattet. [1/2]
This is really remarkable: 75% of German (gas consuming) companies are saving gas without reducing their output. And almost 40% say they could reduce gas consumption even more without producing less.
#Energiekrise
Viele Industriefirmen senken Gasverbrauch, ohne
#Produktion
zu drosseln - Spielraum für weitere Einsparungen ohne Produktionsrückgang scheint zunehmend ausgereizt.
#ifoUmfrage
#Germany
is _extremely_ lucky that
#Russia
chose 2022 to turn off gas. 5 years earlier it would have been a catastrophy: The
#LNG
market was still too small to be a replacement. 5 years later? Catastrophic as well: Germany was just about to really double down on Russian gas. 1/2
Right now, Ukraine could get $1 billion per month in earnings from the "frozen" Russian assets. It would work like a trust fund for Kyiv: The substance isn't spent, but there is an eternal stream of subsidies from interest. Way more than Ukraine ever made from gas transit.
EU leaders back use of earnings from Russia’s frozen assets to help Ukraine, with officials telling the
@FT
that the European Commission is expected to put forward legal proposals in early December.
@ft
w
@lauramdubois
Time is running out for
#Putin
's economic war.
Gas prices keep falling.
#Germany
's industrial output grew nicely in September. Surveys in Germany show increasing optimism. Only 36% of Germans expect
#gas
shortages this winter according to a recent survey, down from 52% in August.
But since the Kremlin's motives have evolved from domination to the complete destruction of Ukraine within days after 2/24/2022, there is no room for compromise. On the contrary: For Putin, it is crucial that there never be the slightest hint of compromise with Ukraine.
New data!
#Russia
's oil and gas revenues hit another record high in April. 1.8 trillion rubles in a single month, after 1.2 trillion in March. After only 4 months, Russia's federal
#budget
has now already received 50% of the planned oil and gas revenue for 2022 (9.5 trillion).
#Russia
is forced to sell its Urals
#oil
at a 50% discount, prices are falling as low as $37.8 per barrel. Diverting the first million barrels per day of oil away from the EU was doable - but diverting the second million barrels per day is much harder.
Long-time observers of Russian domestic politics know how important this reputation is to Putin's grip on power. Navalny was supposed to die a spectacular and painful death on a plane, but survived through luck and FSB incompetence. Prigozhin's execution was similarly theatrical.
Ich denke, wir sollten den Amerikanern noch einmal "Thank You" sagen für die Sanktionen gegen
#NordStream2
. Ohne die wäre die Röhre wohl im Winter schon in Betrieb gewesen, und das Energiedesaster heute wäre noch eine Nummer größer.
Discussions of "negotiated settlements" are mostly conducted by international relations (or "geopolitics") experts who don't have a strong background in Russian domestic affairs. They focus on the first motive: Russia's imperialism and desire to dominate Europe.
So Russia is willing to end its war on Ukraine under the following modest conditions:
- Regime change in Kyiv ("denatsifikatsia")
- Destroying Ukrainian army ("demilitarisatsia")
- All annexed territories to Russia
- What's left of Ukraine: "neutral"
CC: German intellectuals
I believe that EU should not reject Russians fleeing mobilization, but we should also not be naive: Many of those who come will:
- generally support Putin
- look down on Ukraine
- believe Crimea should be Russian
- blame the West for the war
- think Bucha was staged
- etc...
Pretty clear from this: The FSB version of Dugina's murder is fake. I hope that all news broadcasts now say "Russia's official version of the events has been debunked, their supposed evidence was photoshopped." (instead of simply quoting the FSB version as if it could be true.)
1/5 SECOND LOOK: "Azov batallion ID" presented by FSB, as basic online forensic tools see it. Forensically reveals the quality time the photoshop artist spent with clone tool, due to some darn fine pattern.
#dugina
#UkraineWar
#FSB
#fake
Es wird keinen Frieden in der
#Ukraine
geben, bei dem Kyjiw Gebiete an
#Russland
"abgibt". Das ist reine Phantasie. Es würde die Zerstörung der Ukraine als Staat voraussetzen. Die einzige Chance für Frieden ist, dass Russland sich an der Invasion die Finger verbrennt. /1
1.) US-Sanktionen gegen Nordstream2
2.) US-Sanktionen wegen russisch-amerikanischer Spannungen.
Mit anderen Worten: Am Vorabend der russ. Invasion hat ein systemrelevantes deutsches Unternehmen ausschließlich auf die "bösen USA" geschaut, nicht auf das "verlässliche Russland". 2/
Heute Party in der russischen Botschaft, mit dabei: Gerhard Schröder, So-yeon Schröder-Kim, Egon Krenz, Klaus Ernst, Alexander Gauland und Tino Chrupalla, letzterer mit Geschenk für den russischen Botschafter.
Bei Anne Will: "Wer garantiert, dass das Gasembargo Putin jetzt sofort stoppt?" - das Klingbeil-Totschlagargument gegen jede Sanktion, jede Unterstützung für die Ukraine, und generell jede aktive Außenpolitik. Garantiert ist da leider grundsätzlich nichts.
The Russian budget plan for 2024 has to be a wake-up call for the West. Putin is in it to win it. It will take a much bigger effort and more spending by the West to stop him.
Es gibt keine guten Argumente gegen Panzerlieferungen an die Ukraine.
Es gibt aber auch besonders schlechte, wie bspw. die Sorge, dass Russland dann die NATO angreift.
@BachmannRudi
Schwer zu glauben: International erfolgreiche deutsche WissenschaftlerInnen wollen pro bono die deutsche Politik beraten, liefern im Eiltempo dringend benötigte, differenzierte Analysen. Und dann müssen sie sich so etwas aus Berlin anhören, weil ihre Ergebnisse nicht passen.
Russia is threatening to expropriate more Western companies if Russian reserves are used to compensate Ukraine. But Western governments should ignore this warning. Everyone who invested in Russia knew about the risks before, and accepted those risks in order to reap the rewards.
It is shocking to me that there is still no sense of urgency in Berlin about where we are headed... Every day we remain in this passive state will cost us dearly. Are we sleepwalking into Ukrainian defeat, or - even worse - have we already quietly accepted it?
Wieso demontiert sich RDP so nachhaltig in aller Öffentlichkeit? Ich werde es nie verstehen. Er hätte einfach ein netter B-Promi bleiben können, dessen Bücher hier und da zu Weihnachten verschenkt werden.
#Scholz
bei Anne Will mit frontaler Attacke gegen Ökonomen (i.e.
@BachmannRudi
& Co), es sei "unverantwortlich, irgendwelche mathematischen Modelle zusammenzurechnen, die dann nicht funktionieren". Und
#Russland
könne mit seinen Deviseneinnahmen eh nichts anfangen. Harter Tobak.
In Germany, BASF CEO Brudermüller is complaining about high gas prices, which are a consequence of
#Russia
's war on
#Ukraine
.
Meanwhile in Russia, BASF is apparently fuelling the war itself through Wintershall. I wish Brudermüller was equally concerned.
Aus der Vorlesung direkt in den Fleischwolf. Burjatische Studenten werden aus der Uni geholt, um in der Ukraine zu kämpfen. Auch die Studenten hat die russische Führung angelogen. Shoigu vorgestern: "Alle können beruhigt in die Seminare gehen, niemand wird sie einziehen." 1/3
Студент Бурятского государственного университета в Улан-Удэ рассказал The Village, что сегодня утром на пары в вуз пришли росгвардейцы и военная полиция и «забирают студентов прямо с пар»
Im Grunde sagt Reisner: Wenn Europa seine Unterstützung für die Ukraine nicht bald massiv erhöht, wird Russland die Ukraine vernichten.
Ich hoffe, dass es nicht mehr allzu lange dauert bis der Ernst der Lage überall ankommt.
One more time: We will NOT get more gas if we open
#NordStream2
. You say: But Putin is promising it! Well, you are being fooled again! Nord Stream 2 is peanuts, compared to our other
#sanctions
. The only way
#Gazprom
sends gas is if we completely give up supporting Ukraine. 3/3
Die Konfrontation mit dieser düsteren Aussicht ist unangenehm, aber notwendig. Russland ist ein viel größeres Problem für uns geworden als viele in Deutschland wahrhaben wollen. Überraschungen sind immer möglich. Aber -Stand heute- wird der Krieg Europa für viele Jahre prägen.3/3
Ich sehe nur ein Szenario, das etwas Stabilität bringen könnte: Dass die Ukraine mit unserer Hilfe so wehrhaft wird, dass Russland irgendwann aufgibt, anzugreifen. Der Weg dahin ist weit. Russland wird durch eine eigene Zeitenwende gehen müssen, die sich gewaschen hat. 2/3
The downfall of Gazprom:
2022 revenue from gas: 3.8% of Russian GDP.
2023 revenue from gas: 2.0% of Russian GDP.
When Gazprom cut gas supplies to the EU, it killed the goose that laid the golden eggs. 2022 was a bombastic year, but now Gazprom's gas business is losing money.
Where do Russian soldiers come from? Here is a great paper by
@LSolanko
that tracks increases in household bank deposits (that cannot be explained by regular economic activity) as a proxy for mobilization across Russian regions.
Uncomfortable truth:
#Russia
's energy revenues are going through the roof since the start of the war. Without oil
#sanctions
, we simply won't be able to put real economic pressure on Putin's regime.
5.) The damages can take several months to repair. Sanctions and drone attacks work hand in hand here, as Western parts are more difficult to obtain.
6.) Ukraine has just scratched the surface of what it can do here. Russia will try countermeasures but probably remain vulnerable.
Vielleicht ist das blutige Gemetzel, das die russischen "Sicherheitskräfte" heute mit den festgenommenen Tatverdächtigen veranstaltet haben, noch einmal ein Reminder dafür, warum Ukrainer nicht unter russischer Kontrolle leben wollen.