Well, this caught even Sneaky on the hop. An interesting read.
Obvs the prognosis is his own view.
"This morning a friend of mine called to congratulate me and Ukraine on the victory.
Being sort of stuck in a military mindset I started to explain that we are a bit aways, and that the war will not shift fully in our favour until November.
Cheeky sod laughed at me and said no...
"Ukraine has already won the economic war, right now it is more about how much more they can **** up Russia", and then he explained.
And when a Head of International Risk Managers at Morgan Stanley gives you a lecture, then you listen... well.
Now, let us go back to the greatest boxing match in human history, "The Rumble in the Jungle".
For round upon round George Foreman had Muhamed Ali up against the ropes pounding him, but in the end Muhamed Ali jumped away from the ropes and started to dance, and then he delivered a series of blows, the last being a left hook.
Now, let us freeze time into a standstill.
That left hook is frozen an inch away from the chin of Foreman, you can easily see that this is it, when time unfreezes it will connect, the head will whip upwards and backwards, the knees will fold, the 10 seconds will be counted, and from then on Muhamed Ali is the greatest boxer of all time.
George Foreman is Russia, Ali is Ukraine + allies, and the chin about to be hit is Gazprom (among other companies).
Russia has some spectacularly big companies, all of them are that type of cashcow that any country would give an arm and a leg to have.
The list is long, Gazprom, Lukoil, Severstahl, Severmesh, Arcticugol, Norilsk Nickel... etcetera.
All of those are backed by banks, Gazprombank is behind Gazprom, Lukoil is backed by Sberbank, and so on and so forth, and those banks are interconnected.
These companies have gushed in enormous amounts of wealth into Russia, yes 90 percent of the profit was stolen by the oligarchs with Putin taking the biggest cut, but even those 10 percent made Russia itself very wealthy with a national wealth fund almost rivaling Norway.
For 3 decades these companies have made ever larger profits going into the Russian economy.
For now, let us concentrate on Gazprom, but what I am writing is true for all of the companies on the list above.
Gazprom
It is bleading 25 million Euro per day, that is 9.125 billion Euro over a year.
It went there from a 30 billion profit in 2022, 10 billion in 2023.
Normally a company like that would have something like 50 billion in cash on hand, but this is Russia, so it was all stolen or went to the national wealth fund.
As it was hit with sanctions that was ever tightened the cashflow dropped below operation costs, and in a huge company having almost no sales abroad, and huge expenses is bothersome to say the least.
It is though not in and of itself a reason for bankruptcy, after all extremely large companies can have years with spectacular losses.
Even several years.
First such a compaany would take cash from the bank account, and then it would start to shrink operations and effectivize itself.
And if all that failed, the company would just go to the bank and borrow some tosh against the balance sheet.
After all, banks know that hydrocarbon companies are bound to make ridiculous profits again in the end as they move out from a slump.
But, who in Russia can borrow money to Gazprom?
Not the banks, they have been bled dry by the government already, so Russia itself has to keep Gazprom afloat somehow.
And, even if the banks could borrow out money theres a problem.
You borrow against your worth in assets.
Like factories, wells, pipelines, and so on.
And her comes that left hook.
As Ukraine started to blow up gas installations and pipelines (somewhat aided by a certain country) those same assets rapidly started to dwindle in fires and explosions.
And due to the cash-shortage Gazprom could not repair things, heck they can't even pay for regular maintenance.
So, ever day that asset value degrade, and that makes banks nervous, incredibly nervours.
And without loans due to lost assets, and with a negative cashflow, Gazprom is now waiting for that final hook to hit home, and it will go bankrupt.
It will in and of itself be the largest bankruptcy in human history, bigger then the Chinese Evergrande collapse.
But, it will not be alone, you will also have Lukoil at around the same time, and then the others will follow 1 by 1.
And with Gazprom goes Gazprombank, and that bank is interconnected with the other Russian banks.
Russia can absorb one of the behemoth companies, and one bank, it will be satanically painful with enormous fortunes erradicated, but the country could take it with huge pain.
Just this might end the war.
But if both Gazprom and Lukoil go under in short order, and both Gazprombank and Sberbank collapses...
Well, at that point all those connected banks would topple since they guarantee loans as consortiums.
Russia can't take that, those two banks stand for 50 percent of all banking in Russia, and as those banks fold the other companies will also fold in a stampede.
And at that point Russia will cave in on itself.
It would take decades to get back up running at that point, even if the sanctions are lifted.
And Gazprom and Lukoil would never return to glory, that train has gone forever.
First of all trust is gone, not even China want to have pipelines from Russia.
And Europe is gone forever, and anyway EU is going hydrocarbon free by 2045 anyway.
Russia
What people always forget is that Russia is not the Soviet Union.
They had generals that knew what they were doing, and they had military power as goal.
Russia is a robber state that is all about money.
Every single leader of Russia is either a businessman himself, or have some of the best economists on the planet employed.
There's not a ****** among them that can't read a balancesheet like a banker.
On the other side they can't understand a military map even if their lives depended on it.
Hence why all these bizarre decissions came from, even their generals are businessmen and robber-barons, and not military men.
I am fairly certain that Russia does not understand that they from November onwards will get an ever worse pummeling from a military standpoint.
A few of them obviously do, if they have had proper military training, or have advisors with such training, but those are not calling the shots.
No, it is the moneymen that calls the shot in Russia, and they are shiting themselves right now.
So much so that by now I would not be surprised if even Elvira Nabiulina herself would grab her handbag and jump out a window.
And with months left until the collapse of the Russian economy, they are so desperate that they are now doing the unthinkable.
Because there's still money in Russia, or well there's money in many places somewhere.
And there's heaps of big billionaires.
They are not yet going for the owners of companies, that would make things worse really.
So, at least for now the classic oligarchs are safe.
But all those who stole money?
The generals, the anti-corruption agency generals, and all of those.... they are now fair game.
Just Shoigu and his gang of merry robberers are good for around 500 billion Euro.
All of them are arrested except Shoigu, and he will also get it.
All of them except the lady that was smart enough to flee to France for asylum, are currently being wrung out in Lefortovo.
Being tortured to hand over all information of where their moneys at, and then tortured into opening said accounts and transfer the money into government hands.
Problem is that most of it is in fixed assets and not in readily available cash, and Russia needs cash more than anything else, or gold.
So, it is just enough for a few months of CPR for the Russian economy, and then they are all gone.
And the head honchos now realise that they have exactly those months to turn the tide, after that it is to late for Russia, and for them.
If they fail they will have tens of millions of unemployed Russians being somewhat unimpressed with their general existense.
Kremlin
The merry boys in Kremlin, and those less fortunate being gangraped under Lefortovo, desperately need peace.
Any peace really, there almost no terms s***y enough to not be better compared to what is coming.
It is sort of irritating that whatever we do on the battlefield will have so little meaning, after all, we have lost so many lives that we deserve some sort of glorious victory, and not something more or less decided in a bank board room.
But, still here we are.
And this is what Ukraine should push on, all we need to do is say, we will continue if you do not sign this monsterlist of conditions.
Russia is the one now risking to loose everything, not Ukraine.
Ukraine can afford to be patient a few months extra, Russia can't afford that.
Russia needs to get rid of their military and arms expenditures, they need stability to sort out their economy, they need to not have their factories bombed, they need sanctions lifted, they need foreign loans.
Personal Reasoning
I do not know what would be better.
All I could do was to send forward the assesment, and with a personal recommendation about what I believe would be best longterm for Ukraine.
There's two distinct options here.
We can call them the EU Option, and the US Option.
The US is not favouring a collapse, whereas EU dearly want a Russian Collapse, and are willing to take any risks associated with such a collapse.
US on the other hand dream some weird dream about using Russia as a weapon against China.
But, a peace is Ukraines to make, or not make.
And with the military victory solution being less important by the day, Ukraine is less depending on the US by the day.
But, it is still highly depending on EU, this since it will be EU helping out with the reconstruction, and then we have the upcoming membership on top of that.
Question is more, does Ukraine have more to gain from a Peacedeal than they have to win by just stubborn-arsing things until Russia collapses?
I sort of bet that there will be a compromise between the two opinions in the end, and the peacedeal will be monstrously expensive for Russia.
Russia will have to ceade land to Ukraine and EU.
Bilhorod, Bryansk, Ingria, Karelia, Kralovic, Kursk, Pskov, Rostov, Volgograd, Voronezh would probably be just the bare minimum in this regard.
Perhaps they will lose even Kola Peninsula.
EU does not want Russia to have any ocean acces from the Black Sea, nor the Baltic Sea.
Next over, all nuclear bombs will have to be handed over, together with everything that can carry a nuclear bomb, EU and Ukraine want Remnant Russia declawed permanently.
And, Russia will most likely not get to bring any gear out of Ukraine, and there will be limitations on numbers of airplanes in Russia.
Russia will also have to sign over all assets outside of Russia to Ukraine, private or public.
Then we come to the very long list of warcriminals.
What can Russia hope for?
A very limited number of leaders getting immunity for the time that they remain in "their chairs".
Limited lifting of sanctions, and cash loans.
Just the bare minimum to stave off a collapse, but nothing more.
This is about all that Russia can hope for, unless the US can come up with something convincing enough to satisfy EU and Ukraine.
Anyway, this is one path that could lead to victory.
But, what is most important is to not lift off the pressure on Russia on the battlefield.
Because, in November the trajectory of the war will shift into Ukraines favour.
And, then there's also diplomacy, there's way more going on than people expect, and China are now turning the screws bigly on Russia in this regard, and in regards of their own sanctions on Russia.
I recommended going for maximalist terms in any upcoming peace negotiation.
And those are set to start in September/October, and this time Russia is invited.
But, it is more of handing over the terms and conditions for a Russian surrender.
From maximalist terms, we can always throw a small candy or two Russias way to get them to b***r off permanently."