😱Powerful explosions shook Kremlin! Putin didn’t expect such an outcome. Economy is at rock bottom

Ukraine is expanding its energy war against Russia, striking oil assets far from the front line. Dr. Thomas O'Donnell explains that while Caspian Sea platforms don't produce a high percentage of Russian oil, these strikes are part of a systematic campaign. He highlights a significant shift in policy, moving from ineffective oil price caps to severe sanctions and tariffs, especially from the US, Europeans, and Brits. This coordinated approach, including Ukrainian drone and missile attacks on refineries, ports (like Novo Rosia), and shadow fleet ships, is seen as a total campaign against the Russian oil sector.

Senator John McCain famously called Russia 'a gas station masquerading as a state,' a sentiment echoed by many US senators. Dr. O'Donnell discusses a bipartisan bill in the American Senate, introduced by Senators Lindsey Graham and Richard Blumenthal, proposing 'bone-crushing sanctions.' This draconian bill would impose a 500% tariff on all exports to the US from any country that continues to buy Russian oil, with exceptions only for those contributing to Ukraine's military efforts. The implementation of these sanctions hinges on the outcome of ongoing negotiations, but the intent is to undermine Russia's oil rents and its ability to fund aggression.

The New York Times reports Ukraine has opened a second front at sea, far from the front lines, marking a new phase of the war. Dr. O'Donnell notes that these audacious drone campaigns against the oil sector are coordinated with American intelligence. Ukraine is hitting ports and refineries, forcing Russia to export more crude due to reduced refining capacity. With major export terminals running at full capacity and a global oil glut, Russia's oil is piling up on ships with nowhere to go. Attacks on ships, including those in the Eastern Mediterranean en route to Baltic ports, aim to further cripple Russia's export capabilities. Rapidly shutting down oil fields in West Siberia during winter could cause permanent damage, critically undermining Russia's future as an oil producer.

Dr. O'Donnell explains that unlike previous concerns, the current market has a glut of oil, reducing fears of price spikes if Russian oil is taken off the market. The price of oil is falling, making it an opportune time to pressure Russia. OPEC has significant spare production capacity, meaning Russian oil could be replaced. Bloomberg reports Russia's oil export revenues have fallen to their lowest levels, indicating the effectiveness of sanctions and military strikes. Countries like India and China, major importers of Russian oil, are demanding significant discounts due to the risks involved, bringing the effective price per barrel for Russia closer to its historical break-even point, further squeezing its war budget.

Despite not facing genuine elections, Russia's economy is struggling due to reduced oil revenues and massive war spending. Living conditions are worsening, and the government finds it harder to incentivize military enlistment. Dr. O'Donnell highlights a shift in Trump's strategy, moving from offering enticements to inflicting pain, primarily through robust weapons support for Ukraine and intensifying oil sanctions. He believes this combined pressure, if escalated to the 'nuclear option' of widespread sanctions and continued strikes, could fundamentally alter Russia's economic base, challenging its status as a 'mini-superpower' and pushing it towards ending the war. The US, now an energy superpower due to fracking, is increasingly willing to use its energy leverage against adversaries like Russia, Iran, and Venezuela.