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this post was submitted on 01 Oct 2024
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Unfortunately, the collapse is very slow. Their national wealth fund is currently their bread basket, and that is maintained by their energy exports. With the price of oil being so high, they should be able to sustain their current economy for a couple years at least. There will be shortages, especially in areas where they were reliant on imports.
However, from what I've read, oil would have to drop to around $60 a barrel to spur an economic collapse swift and bad enough to make the war unsustainable. That or the EU and US would actually have to militaristically enforce the energy embargo.
That's how these types of collapses work though.
Everything just barely holds together and then the literally straw that breaks the camel's back hits and then it all goes to shit in an instant.
They're keeping it together but at what cost? We can clearly see the social and demographic cost that will hit in a decade, we can see the economic costs hitting but how long till that manifests into something they can't policy their way out of is a big question.
Russia is spending its future, both economically and demographically, and can’t avoid the consequences. But will those consequences hit them in time to help Ukraine?
Even if they are able to grind down Ukraine, can they really be hoping the Ukrainian economy will help Russia rebuild, after its bombed to hell and back?
Unfortunately that’s the same threshold I’ve read for the US. Right now we’re way overproducing at the cost of the environment but I suppose it holds prices lower than otherwise. However US oil is generally more expensive processes, especially fracking, and supposedly not profitable when oil is under $60/bbl