Thread: What do we earn from selling oil?

What is the bottom line in our discussion?

What I have said is that contemplating of developing some kinds of infrastructure from oil money seems to me is of no use in contemporary conditions as often it's against the market.

So far you were unable to provide an example what else Russia could export to diversify its income, in addition to the energy carriers.

What the point of any examples? I think the less would be the dependence of the economy of the fossil fuels the more any examples you would see. That example of petrol is not the ultimate kind of product I think Russia is able to produce, I believe Russia can do things of far higher level and to be quite more competitive, not just to sell oil and gas, there is history that can show something, and now there are still examples like KAMAZ that time by time has been winning the Dakar.

So, let's assume for now that is the only export available in the near future. So, what would you suggest doing with the oil money?

It's not interesting to me to ponder where would be better to shove that oil money.

Originally Posted by Romik

What the point of any examples?

You see, earlier you mentioned that you think Russia should stop exporting oil and start exporting something else like "released products". So, when I asked for an example, my point was that there's nothing else Russia could export at this point so that it would have any kind of strategic implications. (Selling 100 Dakkar-winning Kamazes a year will not make any strategic difference for Russia as it imports much more volume than that.) However, if you will be able to bring any real example of what "released products" Russia could export at this time (other than its natural resources), I will shut up and agree with you. Sounds like a point?

Originally Posted by Romik

What I have said is that contemplating of developing some kinds of infrastructure from oil money seems to me is of no use in contemporary conditions as often it's against the market.

Yes, I got that. Perhaps, there's no perfect solution at all. But things are relative, and some solutions are better than the others. So, what do you think would be better: (i) stop selling oil anything and get no money, (ii) let the oil money be buried in the US banks (in some US government bonds), (iii) spend it inside Russia, or (iv) spend it outside Russia? What's your call on that?

Originally Posted by Crocodile

You see, earlier you mentioned that you think Russia should stop exporting oil and start exporting something else like "released products". So, when I asked for an example, my point was that there's nothing else Russia could export at this point so that it would have any kind of strategic implications.

I'll try to explain simpler. It's not actual to refer everything to "at this point", "at this time". Of course, it's impossible right now to stop exporting oil and immediately to begin to export a lot of high-tech products. Imagine it like a graph, not as some sticked point. Now, for example, you can't produce a product but when there is a change of conditions to one degree you could do it, when there is another change you could produce another product and that cause others products and so on. And that refinement of crude resources is one step that itself can cause other things. Once there is a bit decrease of selling oil you'll see producing a number of released products, another bit - another number and so forth.

Originally Posted by Crocodile

However, if you will be able to bring any real example of what "released products" Russia could export at this time (other than its natural resources), I will shut up and agree with you. Sounds like a point?

No, it's doesn't sound like a point to what I've explained

Originally Posted by Crocodile

So, what do you think would be better: (i) stop selling oil anything and get no money, (ii) let the oil money be buried in the US banks (in some US government bonds), (iii) spend it inside Russia, or (iv) spend it outside Russia? What's your call on that?

It's difficult to comment that because you missing a lot of points.

Originally Posted by Romik

It's not actual to refer everything to "at this point", "at this time".

Let me be more specific. So, what do you propose to sell right now? If that is not oil, than what? You mentioined earlier that "everything is more expensive" than in the other countires. My main question was: what do you think of doing with the oil money? Right now it is just 'saved', but I proposed to invest it into the infrastructure. So, what's your call on that? If I'm missing "a lot of points" please mention at least three. Sounds fair?