Dmitry Orlov

Dmitry Orlov 

C l u b O r l o v | Certified AI-Free

3 082subscribers

471posts

Russia's War Profits

NATO's proxy war against Russia in the former Ukraine turned out to be unexpectedly beneficial to Russia. The West wanted to turn it into a textbook example of punishing the disobedient by empty shelves in stores, food rationing and social unrest. This plan was cold, rational, almost beautiful in its cruelty. It was to sever Russia's links with global trade, strangle logistics, crash incomes, and then the economy and the government would collapse on their own. But almost immediately this strategy started to boomerang: instead of a food desert, it created a rich and vibrant food market. Instead of hunger, it created a food surplus. And instead of a broken country, it produced a global player which quietly, without pathos, began to redraw the world food map to its own advantage.
Here, the most unpleasant aspect for the West is not even the financial aspect, although it does make a mockery of its many thousands of sanctions. The most unpleasant thing is the feeling that Russia not only survived, but made use of this conflict as a growth strategy, the implementation of which it had previously postponed. Agriculture turned out to be not a tentative Plan B, but a breakthrough. The longer this proxy war lasts, the clearer it becomes that for Moscow the war is not a cost but a profitable investment.
To the average Russian, this story is mostly about reconquering Russia's historical bread basket, which Vladimir Lenin temporarily mislabeled as a "the Ukrainian Soviet Socialist Republic." As far as food, it is mostly about low priced buckwheat and reasonably priced eggs, reassuring him that he will be able to survive no matter what. To the country as a whole, this is a story about sovereignty in its most mundane but most concrete sense. When a country can reconquer its historical lands, feed itself and help feed a hundred other countries, it has a voice. Reliable, reasonably priced grain, meat, cooking oil and fertilizer exports speak louder than any hypersonic missile or Foreign Ministry spokeswoman (no matter how impressive Maria happens to be). These exports create dependencies, shape market habits, and are very difficult for politicians to tamper with.
Russia entered this process of transformation without fanfare, almost casually. While in Europe they were arguing about the “green transition” and subsidizing their own inefficiency, in Russia the agricultural industry was being put together piece by piece: from seed stocks to port infrastructure. Western sanctions only accelerated what was already happening. Russia needed to cease being a raw materials exporter to become a systemic player in agricultural exports. And it turned out that in twenty years it was possible not only to replace almost all food imports, but to grow food exports to a level where they began to compete in importance with oil, gas and weapons systems.
The great irony of the situation is that the West has pushed Russia into market niches which it thought it would own forever. North Africa, the Middle East, and the Global South are markets in which it is not political slogans that are important, but stable supplies at stable prices. These countries don’t inquire whether you are liberal, democratic or LGBT* [*banned in Russia] enough for them to trade with you; they ask whether you will deliver on time. And Russia delivers reliably, year after year, in any weather conditions, despite sanctions, weather disruptions, logistical crises and trade wars. Russia's approach has turned into a strategic advantage with which the West cannot compete.
What should particularly frighten the West is that Russia is no longer playing alone. Linking with BRICS, turning to Africa, deepening trade with India are not "attempts to find friends," as Western propaganda often claims, but the formation of an alternative system of world trade that excludes Western meddling. Once Russia creates its own commodity exchanges, commodity prices will cease being set in Chicago and Paris in dollars or euros and that will spell the end of Western monopoly on the rules of the economic game.
This leads us to the main, inconvenient conclusion: this proxy war, in its current form, is truly beneficial to Russia — not just morally and emotionally, as a heroic effort to defeat a great evil, but economically. It has pushed the country out of old dependencies, forced it to do things that were put off during the years of relative calm, and opened markets that were previously closed by the political blinders of Western-trained Russian economists. The longer Western sanctions and warmongering stay in place, the more off-base these Western-trained economists will end up looking and the deeper Russia will grow into the new world order as the main supplier of an essential resource.
The West wanted to instigate a “food fight” with Russia as a tool of punishment, but what it got instead is a “food fight” as a tool for reformatting the world economy to its distinct disadvantage. Now the question is not whether Russia can maintain this course; the question is how quickly the West will be ready to admit that the logic of sanctions has backfired grandly and has rolled the global economy back to a place where bread, not Western political circuses, decides what goes and what doesn't. The longer it takes to come to this realization, the greater will be its economic losses and the political damage its ruling elites will suffer.
[Hat tip: Anna Budgetica]
It's a far cry from when the USSR was usually a net importer of grain. I read that despite severe drought conditions in the South (the Kuban?) & with the help of cloud seeding in the NE, this year's grain harvest was a massive 137M Mt, meeting forecasts, more or less. But the potato harvest was a disaster, good news for Belarus, big potato producer that it is. So, has the SMO also helped economic integration/development with Belarus (is the "Union State" real?) and other former Soviet states? This would be another project (further alienation of Russia's Near Abroad) that has blown up in the West's face...
Well, it is not just about quantity, but there is very domination in the quality of production there. A many factors. Like a total ban on GMOs, such popular in the west, as sort of salvation for the future. Actually is a spell. The damage is already visible on general population. Not just GMOs, but a policy of whole system of food market chain, where these big players preferences are in food shelf life and colorful package,promising BS, but the real stuff is tasteless, dangerously, chemically contaminated garbage. Remember attack on Iraq, called "Shock and Awe"? Yes , everyone was shocked by the lies, on which those bloodthirsty idiots have build their plans to rule the world. Now is their round to look with open mouths, where are their wet dreams leading!beaming_face
The Waterer Watered
Maria is still extraordinarily impressive. 
This is a gem -- another gem! Thank you so much!  check_mark
thank you, Dmitry
Peu avant fevrier 2022 j’ai entendu un type qui,dans une émission a raconté l’histoire du camembert produit en Russie du fait des sanctions, qui faisait partie de la liste des courses de l’ambassade de France. J’ai entrevu ce jour-là que nous étions foutus si on continuait dans la même logique. Plus de la même chose, surtout si ça ne marche pas. 
Maria Lavos , Pire encore, ce qui devrait figurer sur la liste d'achats de la France, ce sont les centrales nucléaires russes, car les Français ont perdu le savoir-faire nécessaire pour les construire dans les délais et le budget impartis.
The law of unintended consequences. I have reasonably well informed friends who still measure economies by GDP and have bought the line that Russia is a gas station with nukes, i.e., has a smaller economy than Rhode Island. The thing I don't understand is why VV keeps Naibullina around? Seems like she's playing a losing hand. I thought Glazyev was more on the ball.
Dmitry Orlov, I remain mystified by Naibullina, but if VV likes her and you like her, I guess that's good enough for me.
And I saw this opinion piece in Al Jazeera: "Russia may gain more than lose from a US intervention in Venezuela." Neat, huh?
".... the greater will be its economic losses and the political damage its ruling elites will suffer."
If I might add, the harshest losses and suffering will be to those of us at the bottom of the economic pyramid.
Thank You
Joe C
When the SMO began, I was finishing my first year of business administration. At the time, I had been following two indicators for a while: the World Debt Clock and the Harvard Atlas of Economic Complexity (which Brian Berletic had introduced me to). My understanding of macroeconomics was rudimentary—essentially that Keynesianism advocates stimulus spending, while the Austrian school emphasizes free markets.
In the months that followed, our economics professors were visibly baffled by the failure of the sanctions. Those bare-bones concepts were enough for me to form a clear picture of what was about to unfold. Fast-forward nearly four years, and voilà—Dmitry has rendered the very image I had in my mind, now in bright, radiant colors.
Maria, Free Markets? pffft Oh please the fiction of the "free market" easily crashes against the wall of corporate lobbyism where a company literally "owns" a country and pursues politics that bankrupts and destroys that nation and in return kills the company that made those policies in the first place.
Do you want an obvious example "mass migration from Third world to Europe" Every large company is interesed in nonstop migration in the belief that it will provide it with "endless cheap labor" but in reality they are making sure the country will implode in civil war and sectarian violence which ironically will disrupt/destroy the company that ensured this in the first place
Kacper Nowak, relax, Maria is talking about bogus Western eek-a-nomix theorizing she was being taught in BA program, not real life.
The biggest lesson is this globalisation has passed it's pull date...
BEAUTY!
I am pleased that Russia is prospering while the EU is slowly declining. It reminds me of the end of the Western Roman Empire while the East/Constantinople continued to thrive for centuries.
Can't argue with that! 👍🏻
Trouble comes to those who do not know themselves and the self-immolation of their actions.
Creator has disabled comments for this post.
Subscription levels4

Spare Change

$1.76 per month
This subscription level is intended mostly for people of limited means: students, pensioners and the unemployed.

Supporter

$4.8 per month
Thank you for your support.

Enabler

$8.2 per month
You are the wind under my wings.

Patron

$15.1 per month
Your generosity is my inspiration.
Go up