• emergencyfood@sh.itjust.works
    link
    fedilink
    arrow-up
    6
    arrow-down
    1
    ·
    3 days ago

    No, the distinction is important. Russia mostly extracts petroleum and gas, and exports them. The processing happens in China or India. Then, the processed components, including petrol (gasoline), are resold by China and India.

    Now I’m sure Russia would rather their refineries not be attacked, and these disruptions could very well cause local shortages or price fluctuations. But for the wider economy or overall supply chains, this won’t matter much.

      • emergencyfood@sh.itjust.works
        link
        fedilink
        arrow-up
        6
        ·
        3 days ago

        He first graphic here proves you wrong

        Look at the six categories in the graph. Only the dark red represents processed petroleum.

        Why would anyone sell cheap crude then buy back expensive gas??

        Right, why would any country export cheap raw materials and buy back expensive finished products? That could never happen, right? Surely the majority of the world’s countries aren’t doing it?

        Why have refiners if youre exportibg crude?

        Bunch of reasons: (1) for domestic use, (2) they can sell it for more, and (3) Russia had a great industrial sector back when it was part of the USSR, and some of that still survives.

        But you are right that attacks on Russian refineries will reduce the processing that is happening within Russia. They will have to buy more products from China, etc. Hopefully this convinces their government to invest in industry, but based on what I’ve seen so far I’m not holding my breath on this.