The War In Ukraine, The Global Energy Crisis & Germany’s Drift

The war in Ukraine rolls on in all its vicious terribleness but it is no longer gaining the attention or the urgency that such a conflict deserves - requires - during a time when unspeakable acts are being committed in the name of.

Only the latest atrocity are satellite images suggesting that there could be as many as 9000 in a mass grave outside of the besieged port city of Mariupol.

This gradual shift is especially true in Europe which is quietly not embargoing Russian oil and gas and not even sanctioning German politicians - such as former Chancellor Gerhard Schroeder - who have not even quit their Russian boards and appointments yet (!!).

And the headlines are full of aid and some of it is pretty impressive but a lot of it isn't that earth shattering. Quite the opposite, in fact, especially for some of the richest, most developed, most comfortable countries.

This is a tough chart to read, especially for some:

And one that should get more attention.

Here is another that gets to the heart of the matter.

To put things into perspective, the value of European oil & gas imports from Russia is well over 4x its aid to Ukraine.

Furthermore, as the statistics make it perfectly clear: Europe isn't reducing their energy consumption one iota because of the war in Ukraine.

This is untenable.

This isn't just distasteful or a "bad look" as some might say. These facts are directly against European security and strategic interests. It is also terrible for Ukraine.

As we have detailed before, every week European countries are funding the war with their energy purchases. This isn't pocket change. This is capital that is being deployed to fund a war machine and operate an authoritarian state. It is a direct relationship.

And a lot of what they are sending Ukraine isn't necessarily helping turn the tide of the conflict.

Here is a last chart that should get more publicity:

A lot of these billions are not in military aid. And no doubt there are other needs but they all will be for nought if Ukraine can't fight back. That requires real weapons and really good ones, constantly.

Is there any good news?

The hope is that, well, this is actually an untenable situation. And European countries will swiftly realize it and take further steps to curtail their purchases of Russian oil and gas.

This must happen.


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