06-16-2022, 11:03 AM
Now, shifting gears, as we prepare these measures to maximize pressure on Russia’s leadership, we’re equally focused on minimizing unwanted spillovers. And we know many of you have questions about the potential impact of a conflict in Ukraine on energy supplies. I want to make one key point that I’ve seen missing in the coverage. So, if Russia decides to weaponize its supply of natural gas or crude oil, it wouldn’t be without consequences to the Russian economy. Remember, this is a one-dimensional economy, and that means it needs oil and gas revenues at least as much as Europe needs its energy supply. So remember, oil and gas export revenues are two thirds of the total in Russia and about half of Russia’s federal budget revenues. So this is not an asymmetric advantage for Putin; it’s an interdependency. And with that, let me turn it over to my colleague. And good morning, everybody.
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