By Micah Halpern
I've Been Thinking:
Russia is feeling the crunch of their policy in Ukraine. They have had to diversify their markets and recruit different buyers for their essential natural resources.
In other words, Russia needed to find new buyers for their oil.
It is not only Ukraine that has hampered Russian oil growth.
Another blow to the Russian economy is the fact that crude oil prices have fallen dramatically.
Natural gas and crude oil compose over 60% of Russian exports. That is a huge chunk of their economy.
Leave it to Russia, they have found alternatives. Russia is now the largest supplier of oil to China - doubling their exports of oil to China in the past year. In May alone Russia provided 3.92 million tons of oil to China.
The Russians are now exporting more oil to China than Angola which exported 3.26 million tons and Saudi Arabia which supplied 3.05 million tons of oil.
Russia knows how to play the game. They are out there making certain that they gain market share and that they do not lose influence in the world.
Dropping exports would signal weakness. Russia would never let that happen. Russia wants to show strength.
Micah@MicahHalpern.com
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