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Trade in War

(news.mit.edu)
94 points LorenDB | 58 comments | | HN request time: 0.213s | source | bottom
1. rho4 ◴[] No.45090791[source]
I for example do not understand how it can be possible that Ukraine transports Russian gas on its pipeline network. Not sure if that's still the case though.
replies(8): >>45090803 #>>45090826 #>>45090906 #>>45090937 #>>45090995 #>>45091000 #>>45091035 #>>45092236 #
2. lifestyleguru ◴[] No.45090803[source]
Everyone involved and decisive are neighbours living in Dubai.
replies(1): >>45090831 #
3. Cthulhu_ ◴[] No.45090826[source]
They stopped on January 1st 2025 when the contract with Gazprom signed in 2019 expired, costing Gazprom / Russia an estimated $5bn / year: https://edition.cnn.com/2025/01/01/business/ukraine-russia-g...

It's a complicated one, but legally it's a civil contract; if the Ukrainian government decided to stop the gas flowing, both Gazprom and all the companies "downstream" would be in their rights to sue for breach of contract and/or causing gas shortages, costing the Ukrainian government billions.

And you could wonder why they signed the contract anyway given Russia invaded/annexed Crimea 5 years prior, but, it's a lot of money, and at the time it was still considered a civil contract I presume.

replies(2): >>45090893 #>>45090901 #
4. jiggawatts ◴[] No.45090831[source]
You're thinking of HAMAS and co in Qatar.
replies(1): >>45090851 #
5. lifestyleguru ◴[] No.45090851{3}[source]
Applies to both conflicts apparently.
6. blackhaz ◴[] No.45090893[source]
I am completely naive,l as I don't understand much in contracts, but wouldn't war effectively nullify those contracts? I mean, if a large proportion of your adversary's economy hangs by a simple piece of paper, I'd expect one to suggest them to go and wipe themselves with it.
replies(4): >>45090923 #>>45091024 #>>45091056 #>>45091660 #
7. XorNot ◴[] No.45090901[source]
Also because the gas itself went to customers outside Ukraine.

Ultimately the general public is capricious in its beliefs: cutting the gas off and causing energy prices to spike in Europe means someone will call for the head of whoever's nearest to blame.

Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons - though I'd say recent American political history shows what a mistake that is.

replies(2): >>45090947 #>>45091435 #
8. scyzoryk_xyz ◴[] No.45090906[source]
I believe it's in part due to the actual way the pipelines work - gas isn't simply piped into one end and out the other like fluid or switched on and off like energy systems.

Switching it off on one end would require storing it somewhere at the source and switching it off on the other could destroy the actual piping. You can't just "take" it from one and easily transfer it to another customer.

AFAIK it's the engineering but that other comment about neighhbors in Dubai is yeah

9. awesome_dude ◴[] No.45090923{3}[source]
I'm speculating.. but...

The Ukraine needed (and continues to need) support from the buyers of that gas - the EU

The war has been going long enough, and the Ukrainian government would have made it very clear that thy would not be renewing the contract.. meaning that the EU had a chance to get their energy via some other route.

10. ◴[] No.45090937[source]
11. awesome_dude ◴[] No.45090947{3}[source]
> Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons - though I'd say recent American political history shows what a mistake that is.

There's been a change in the administration (and therefore strategy) of the USA, which changed the way the game was being played.

I think that (almost) everyone that has actual skin in that particular game also knows that none of the agreements that any of them make are reliable for a long term (I saw recently that the Ukranians gave up the Nukes they had at the behest of the US government, and on the.. I don't know if it was explicit, implicit, or just assumed.. understanding that the USA would provide some sort of security guarantee (which, of course, has never materialised)

replies(1): >>45091437 #
12. contrarian1234 ◴[] No.45090995[source]
Nor do I understand how Europe still buys gas from Russia.. in effect funding and prolonging the war. They seem to be playing both sides. Saying how horrible the Russian regime is, while directly giving it more money. And then giving weapons to Ukraine..

It seems completely morally bankrupt... If instead of Russia it was ISIS, would they still send money just so they have cheap gas? Like at what point would they stop? Do the Russians need to be impaling babies and goosestepping through Red Square?

I also don't understand why Ukrainians don't feel a deep sense of betrayal about this

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13. mamonster ◴[] No.45091000[source]
1) Because the transport fee that Gazprom used to pay to Ukraine was one of the safest rents in the (very dysfunctional) Ukrainian economy(the other being the Odessa port). If you really want to go that far back, the gas dispute in 2008-2009 is when things really started going bad between Russia and Ukraine.

2) Because this gas was needed in Europe.

I would go as far as to say that if there is any peace in Ukraine within the next few years then Ukraine will probably demand that if any gas goes from Russia to Europe it would go through Ukraine.

14. cdogl ◴[] No.45091024{3}[source]
I don’t think you are naive - it’s counter-intuitive. The political context is important: Ukraine is incentivised to portraying itself as a country that respects international law and norms. The fact of life is that this includes respecting civil contracts made in good faith. This moral high ground has a cost.
replies(1): >>45091421 #
15. maccard ◴[] No.45091026[source]
> Nor do I understand how Europe still buys gas from Russia

Because the alternative isn't buying gas from somewhere else, it's not buying the gas. This turns a foreign war into a major major domestic issue.

replies(3): >>45091085 #>>45091098 #>>45091103 #
16. t1E9mE7JTRjf ◴[] No.45091035[source]
Or how European countries have bankrolled Russia's invasion with billions per year (100b since the war started) in payments for gas. While paying lip service to optics announcing ever harsher sanctions - like freezing one or two bank accounts of irrelevant family friends of Putin.

Sadly war means western countries will keep printing money, while also funding the military industrial complex. For some, this is a goal.

17. ForHackernews ◴[] No.45091046[source]
Because Europeans need gas to heat their homes and run their economies. They have rapidly built new LNG terminals to diversify away from Russian gas pipelines: https://www.cleanenergywire.org/factsheets/liquefied-gas-doe...

Morality has nothing to do with it, no democratic government will survive freezing its own people for some abstract principle.

replies(1): >>45091080 #
18. jcattle ◴[] No.45091056{3}[source]
Sure. War also makes Nordstream II a legitimate military target. You still have to weigh if it is worth it to risk your good relations with your allies over sabotaging infrastructure which is important for their national security.
19. contrarian1234 ◴[] No.45091080{3}[source]
It's not abstract. The money goes directly to committing war crimes and the bombing of cities. Civilians are dieing as a direct result of their funding of the regime. As far as I can understand, it's not ambiguous that they have blood on their hands
20. ◴[] No.45091085{3}[source]
21. contrarian1234 ◴[] No.45091098{3}[source]
I'd be curious to hear what Europeans actually think of it on the ground. Is it not a major domestic issue that your governments are funding a genocidal regime? Do people just kinda pretend it's not happening b/c it's inconvenient to talk about? Just kinda blush, say sorry, and carry on?

I don't really understand the psychology of it. Are people for instance actively trying to use less gas in their personal lives?

replies(6): >>45091120 #>>45091234 #>>45091261 #>>45091314 #>>45096630 #>>45099386 #
22. poszlem ◴[] No.45091099[source]
Because the alternative is energy prices spiking so high that governments would collapse under mass protests. Cutting Russia off overnight would mean blackouts, factories shutting down, and heating bills people simply couldn’t pay. That kind of chaos would destabilize Europe faster than any Russian offensive.

Europe can’t defend Ukraine by destroying itself.

23. firesteelrain ◴[] No.45091103{3}[source]
Can’t they just increase their imports from the US?
replies(2): >>45091126 #>>45091453 #
24. FirmwareBurner ◴[] No.45091120{4}[source]
edited, not feeding the troll
replies(1): >>45091252 #
25. ◴[] No.45091121[source]
26. poszlem ◴[] No.45091126{4}[source]
They can and they already do, LNG from the US is flowing in. But swapping dependence on Russia for dependence on the US isn’t the clearcut win people imagine. Washington is in the middle of its own trade war, and Europe is one of the targets. Pax Americana is over, and Europe is treated less as an ally than as a vassal. The US openly exploits Europe’s fear of Russia, turning a legitimate threat into a lever for domination. What Europe gets is dependency and vulnerability, while the US extracts obedience and profit.

The irony is that the US slaps higher tariffs on most European countries than it does on Russia itself. As the old saying goes, "it may be dangerous to be America’s enemy, but to be America’s friend is fatal".

replies(1): >>45091985 #
27. poszlem ◴[] No.45091234{4}[source]
Most Europeans see it like watching someone drown, they want to help, but not at the cost of drowning themselves in the process.
replies(1): >>45092978 #
28. myrmidon ◴[] No.45091249[source]
> They seem to be playing both sides.

They are (arguably) playing for themselves first.

Actual EU action in this conflict has been pretty well aligned with citizen/voter interests in my opinion; this is not strictly a good thing, you could uncharitably call it "emergent unprincipled EU hypocrisy".

Many voters want energy safety, inflation to be kept in check and to minimize spending on foreign conflicts and national defense. Lots of Europeans agree with keeping Russian expansionism in check, but they don't really want to pay for it nor risk escalation.

Generally, sacrificing trade for ethical/moral reasons sounds like an easy sacrifice to make, but this comes at a real price (getting overtaken by "immoral" nations that don't, possibly ending with ethically worse global situations in the long term), and things like this get fierce opposition in a democracy where you have to balance ideology with the economical well-being of your voters (ideological voting is much more achievable if you can at least pretend that it aligns with economical self-interest somewhat).

To me, EU feet dragging in the Ukraine war is a bit sad but unsurprising.

Morality wise, I'd say several middle-eastern petro-states are significantly worse than Russia (non-democratic government, human rights violations at large scale epsecially against foreign workers), and trade with those has been going on for decades...

replies(1): >>45092694 #
29. jeltz ◴[] No.45091252{5}[source]
Look at the name, he is likely trolling people.
replies(1): >>45091403 #
30. CheeseFromLidl ◴[] No.45091261{4}[source]
I don’t speak for others, probably a minority opinion. I vividly remember the protests against the switch to Russian oil and against the pipeline. There’s a saying here: if you burn your ass you sit on the blisters.
31. themgt ◴[] No.45091357[source]
Nor do I understand ... Saying how horrible the Russian regime is, while directly giving it more money.

It's nigh on incomprehensible when political leaders' actions contradict their words, since politicians are always truthful. It seemingly happens often but will remain forever a mystery.

32. nereye ◴[] No.45091362[source]
FWIW, USA buys uranium from Russia, e.g. see: https://www.osw.waw.pl/en/publikacje/analyses/2025-06-18/rus...
33. FirmwareBurner ◴[] No.45091403{6}[source]
you're right
34. eru ◴[] No.45091421{4}[source]
> This moral high ground has a cost.

Btw, occupying the moral high ground even when it has a cost, sends a strong signal that you will also be trustworthy in the future, and not just when it's convenient.

Ie sometimes the cost is the point.

Just like the peacock's fancy tail needs to be biologically expensive to work.

35. eru ◴[] No.45091435{3}[source]
> Ukraine also was deliberately not targeting Russian oil assets earlier at the request of the US for economic reasons [...].

I find this fascinating: the US is a net oil exporter so 'as a country' would benefit from higher oil prices.

But it seems in the US your average Joe who tops up his car at the petrol station has more political power than the oil industry.

replies(1): >>45093813 #
36. pydry ◴[] No.45091437{4}[source]
Ukraine gave up its nukes in the same sense that Germany would "give up its [American] nukes" if it exited NATO.

They also had about as much latitude to keep those nukes as Germany would. Some people act like Ukraine owned and controlled the nukes and had a meaningful choice. They never did.

It wasnt given security guarantees either, it was given a promise that its independence wouldnt be infringed upon in a memorandum (not in a treaty).

As the Americans stated themselves in 2013 when they violated their promises within the Budapest memorandum, that memorandum wasnt legally binding. It was treated like toilet paper first by the Americans in 2014 and subsequently the Russians in 2014.

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37. magicalhippo ◴[] No.45091453{4}[source]
As I understand it the issue with that was not enough terminal capacity and storage, but they've been working on that[1].

[1]: https://valvesector.com/lng-ships-and-storage-wars-how-europ...

38. bgwalter ◴[] No.45091476[source]
The issue is complex. Now there is a US president who wants to control all energy supplies to Europe while still talking about new oil deals with Russia:

https://www.reuters.com/business/energy/us-russian-officials...

And wants to control Russian gas to the EU:

https://www.reuters.com/business/energy/us-investors-eye-str...

Nord Stream has been sabotaged, a huge US LNG deal was forced on the EU in the tariff negotiations. The US leased a corridor from Azerbaijan through Armenia to Turkey that could be a new energy choke point for fossil fuels from Azerbaijan or Turkmenistan (lots of natural gas) to the EU.

The EU is in a pretty bad position right now where it can be blackmailed with energy cutoffs not by Russia but by the US.

The Ukrainians can't feel betrayal because they have kept their own transit pipeline open until 2025, long after Nord Stream was blown up (allegedly by Ukrainians on a sail boat, see the recent arrests).

replies(1): >>45093703 #
39. awesome_dude ◴[] No.45091601{5}[source]
When you edit your response, can you do so by clearly labeling your changes.
40. roenxi ◴[] No.45091660{3}[source]
It doesn't take a war to do that, in peacetime governments can also manufacture reasons to just not do things - up to and including just changing the law. The main defence against that is that if they are going to do that later on they simply won't sign up for the deal, so we'd expect a government to honour anything they sign on with.

I'd imagine the logic goes something like Ukraine believes they are benefiting and Russia is too, but they aren't sure which side is gaining more from the movement of gas through Ukraine (which, note, in real terms is supporting the economies that are arming Ukraine). In that situation, the obvious thing to do is just let things play out as contracted. If it was obvious that Russia was gaining a lot more from the deal than they are then they'd just stop.

41. usrusr ◴[] No.45091891{5}[source]
They were Soviet nukes, not Russian. No different from the tanks and uniforms Ukraine inherited from the Soviet Union. Very different from the borrowed US and Soviet nukes both Germanies had in their inventories.
replies(1): >>45092014 #
42. firesteelrain ◴[] No.45091985{5}[source]
Are you sure that is accurate? My research found that since the invasion, Russia’s MFN was revoked and Column 2 rates + import bans make US barriers on Russian goods much higher overall than on EU goods.

1. https://ofac.treasury.gov/media/930201/download

2. https://www.govinfo.gov/app/details/PLAW-117publ110

3. https://www.cbp.gov/trade/programs-administration/entry-summ...

4. https://media.bis.gov//about-bis/bis-leadership-and-offices/...

5. https://www.federalregister.gov/documents/2022/03/15/2022-05...

6. https://ofac.treasury.gov/faqs/1024

7. https://www.cbp.gov/newsroom/national-media-release/cbp-fact...

8. https://ustr.gov/about-us/policy-offices/press-office/press-...

43. pydry ◴[] No.45092014{6}[source]
Ukraine didnt inherit the soviet nukes, the Soviet debts or the soviet seat on the UN security council either.
replies(1): >>45092959 #
44. scyzoryk_xyz ◴[] No.45092236[source]
Something worth adding and reading about is how the very existence of the European-Russian gas relationship has it's roots in German 70's and 80's realpolitik initiative that led to the pipes-for-gas contracts between Germany and the USSR. Neither the USSR not Russia had the internal industrial capacity to build this kind of infrastructure to begin with. The belief was that "they" would become reliant on "us". Who could predict that "they" would want to abuse "us"?
45. DanielHB ◴[] No.45092694{3}[source]
It is not that much different with the US policies in the middle-east. If anything EU is at least not supporting coups in pro-russian satellite states. But I think that is mostly because the EU can't operate at that level of intervention as a federation, it is up for individual states and that can get them into big trouble with the EU.

But yeah, it is not great look for democracies when they can't support good causes because it will cause harm domestically which leads to less votes.

46. XorNot ◴[] No.45092959{7}[source]
Fair doesn't exist in international politics, and it's extremely obvious that handing back the Soviet nukes they had possession of was a mistake.

Whereas try collecting a debt from a nuclear power who's uninterested in paying it.

replies(2): >>45093735 #>>45110910 #
47. baal80spam ◴[] No.45092978{5}[source]
I mean, the compassion ends when your bills increase twofold - it's that simple.
48. no_wizard ◴[] No.45093174{5}[source]
The US did not violate the Budapest memorandum[0]. That’s a false narrative from Russia and violated it when invading and occupying Crimea.

[0]: https://cisac.fsi.stanford.edu/news/budapest-memorandum-myth...

replies(1): >>45093558 #
49. pydry ◴[] No.45093558{6}[source]
Your citation isn't. It doesn't contradict anything I've said. It doesn't back up what you said. In fact, it agreed with me on one key point which you just trashed as Russian propaganda:

>Absent the 1994 agreements, many seem to believe Ukraine could have maintained a nuclear arsenal. In fact, it would have encountered likely insurmountable challenges.

Here is where the Americans said "look, this memorandum isn't even legally binding" while they also try to pretend they didn't violate it:

https://web.archive.org/web/20140419030507/http://minsk.usem...

50. disgruntledphd2 ◴[] No.45093703{3}[source]
> huge US LNG deal was forced on the EU in the tariff negotiations

It wasn't really, as the EU have no ability to make member states do basically anything around energy, so that clause accomplishes basically nothing.

51. pydry ◴[] No.45093735{8}[source]
>Fair doesn't exist in international politics

Tell it to the people caterwauling about the budapest memorandum, not me.

>it's extremely obvious that handing back the Soviet nukes they had possession of was a mistake.

It's the furthest possible thing from obvious. Ukraine couldn't maintain the weapons and was in desperate need of economic assistance it would never have gotten if it kept the nukes.

Moreover, if they tried to keep them Russia would likely just have taken them or rendered them unusable by force and we likely would have supported that.

replies(1): >>45121346 #
52. orangecat ◴[] No.45093813{4}[source]
But it seems in the US your average Joe who tops up his car at the petrol station has more political power than the oil industry.

Pretty much. A common absurdity is politicians railing against Big Oil for causing climate change while simultaneously promising to lower gas prices.

replies(1): >>45097825 #
53. awesome_dude ◴[] No.45096365{5}[source]
Just FTR, I never said "its nukes" I said the "nukes that they had"
54. m4rtink ◴[] No.45096525[source]
The reasonable countries, such as for example Czech Republic stopped using Russian gas and now also oil while the ones corrupted by Russian interests did not & could not be expected to until either their government realigns with the res of EU or the stuff stops flowing.

Guess what happened with the pumping stations once the last reasonable countries stopped importing & the transfer contracts were no longer valid. Yes, boom.

And of course there was much wailing from those corrupted countries that did nothing to get ridd themselves from dependency on Russian energy - how very expected.

55. m4rtink ◴[] No.45096630{4}[source]
In Czech Republic upgraded our infra and stopped using Russian gas and oil.

Might have something to do with Russia orchestrated terrorist attack agains Czech munition warehouses that killed two people in 2014[0].

Or the Soviet invasion of Czechoslovakia in 1968[1] - just because the local communist leaders happened to be a bit too much enlightened for their tastes.

Just a few days ago I went past memorial plague for the girl killed in protests against the Soviet invasion in 1969[2][3] - forever 18 years old...

There were lots of flowers, people still remember.

[0] https://en.m.wikipedia.org/wiki/2014_Vrb%C4%9Btice_ammunitio...

[1] https://en.m.wikipedia.org/wiki/Warsaw_Pact_invasion_of_Czec...

[2] https://cs.m.wikipedia.org/wiki/Danu%C5%A1e_Muzik%C3%A1%C5%9...

[3] https://encyklopedie.brna.cz/home-mmb/?acc=profil-osobnosti&...

56. eru ◴[] No.45097825{5}[source]
> A common absurdity is politicians railing against Big Oil for causing climate change while simultaneously promising to lower gas prices.

Or putting / upholding tariffs on imports of solar panels.

57. hackandthink ◴[] No.45099386{4}[source]
I see different degrees of genocide and support.

I am generally against arms deliveries, especially to Israel and Russia.

Sanctions should above all be effective. Russia is difficult to sanction especially if China and India do not play along.

The energy sanctions hurt Germany more than Russia, so I don't support them.

Specifically, I heat with gas in winter and try to reduce my consumption.

replies(1): >>45121445 #
58. bigbadfeline ◴[] No.45110910{8}[source]
> handing back the Soviet nukes they had possession of was a mistake.

There was absolutely no way for Ukraine to keep the nukes, not only because both the West and the East/Russia were against it but more importantly, the powers that be in Ukraine had other plans.

Also, I wouldn't comment on a fait accompli unless doing so pointed to information important for understanding today's realities.