Vladimir Putin’s Oil Weapon Isn’t Everything It Seems
Russia has followed through on threats to retaliate against sanctions, but the Kremlin’s sound and fury masks a more complex reality.
Weapons of choice.
Photographer: Andrey Rudakov/Bloomberg
Hello and welcome to Elements, our daily energy and commodities newsletter. Today, Bloomberg Opinion’s Clara Ferreira Marques considers Russia’s latest retaliation to energy sanctions, while OPEC’s top official calls on countries to plow more money into oil and Australia’s coal export industry takes another blow. If you haven’t yet signed up to get Elements sent to your inbox, you can do that here.
Russia’s plan to cut oil production by 500,000 barrels a day next month — roughly 5% of its January output and 0.5% of global supply — was a show of strength. In response to what Kremlin officials call the West’s “destructive energy policy,” this was supposed to be a reminder that President Vladimir Putin still holds crucial hydrocarbon cards.