amrnuke
Golden Member
- Apr 24, 2019
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The Obama admin's reaction to Crimea technically / outwardly was just some sanctions.Although Obama's reaction to Crimea wasn't exactly strong, Trump has been trying to undo all of it, including crying at the G7 conference about the lack of Russia. Trump also continues to deny that Russia did any with the elections, Obama was too concerned with appearance but Trump is outright lying about it. The two aren't comparable at all.
But when you look deeper, it was a really good play on the market situation at the time. Oil prices were at highs in early 2014. However, there had been increased domestic oil production, in the US, which sharply increased global oil supply even as global demand was grossly flat. This had started to devalue oil in late June and early July. As oil price devalued, the Russian ruble falters against USD, but net effect is that Russian oil/gas companies could pay for their debt in cheap rubles. Which makes the July 2014 sanction on the largest Russian oil/gas producers that much more biting - it forced them to repay debt in USD. This decimated the ruble and the Russian economy.
Russia then stupidly counter-sanctioned grain/food imports from US and Europe, leading to food shortages in Russia, which along with decreased purchasing power from a weak ruble, produced a great deal of inflation.
I have no evidence the administration directed increased oil production in early 2014 in response to the invasion of Crimea and Donbass. What I do have evidence of is that the administration at the time saw a brilliant opening to punish Russia without ever setting foot on their soil, and took it.
As of early 2015 the Russian ruble was worth 0.016 USD, down from 0.03 to 0.035 in early 2014. GDP fell over 40% from 2013 to 2016 and still hasn't returned to 2013 levels. The ruble has never recovered, actually lower today in comparison to USD than after sanctions.
After the sanctions, you see Russia increasing involvement in US electioneering.