Post by
marketsense on Feb 27, 2022 12:04am
It Begins
The west sanctions Russia by cutting Russian banks access to SWFT. This will have interesting consequences. It will make it very difficult and quite awkward for
US and European customers of Russian oil & gas to make payments to Russia.
How long will Russia continue to supply their NATO customers without receiving
payment back? It makes for a very awkward situation all around. A freeze of
Russian finanacial assets plus their ability to conduct financial transactions could
cause a retaliatory freeze of nat gas & oil to their Western customers.
The conseuqences I should think would be another frenzied spike in nat gas & oil.
Vermillion is sitting right on the top of this powder keg and would be a major
benficiary if this were all to happen. Even if it doesn't go that far, I suspect
we are in for higher prices anyway.
Comment by
DukesMtl on Feb 27, 2022 1:30am
Russia will be shutting off oil & gas supplies to Europe this week. Putin has sanction proofed Russia in advance of these actions and has agreements in place with China and other allies fill in where Europe will be leaving off. Vermilion is well positioned to benefit from this scenario.
Comment by
Moemoney42 on Feb 27, 2022 1:28pm
Although I'm not certain.. I'd venture a guess that the banks that were NOT included in the "swift" access denial would be the only banks that deal in energy $ transfers.. that way the oil and gas will continue to flow.. for now..??
Comment by
Pandora on Feb 27, 2022 9:56pm
It's good to see that the powers that be have it all sorted out. Vodka is more expensive than oil so they have put an embargo or sanction on all Russian vodka and that gives them the logic to continue buying Russian oil. We'll teach them - we can get by without their damn vodka.