Is Russia really “an oil and gas company masquerading as a country”?

That’s the characterization usually attributed to Se. Lindsey Graham.

Let’s drill down on that, starting with some GDP stats.

Russia’s GDP is only about $1.5 trillion.

image

============

Let’s out that number in perspective…

============

Russia’s “economy” is less than 1/10th of the U.S. economy (which is approaching $20 trillion).

More broadly, the Russian economy is  about the 12th largest in the world … smaller than Italy and Canada … and just a little bigger than South Korea, Australia and Spain.

image

============

Taking another perspective on Russia’s $1.5 trillion…

Russia’s economy is smaller than California’s … and roughly equal to those of Texas and New York.

Hmmm.

image

=============

Finally, what about Russia’s dependence on oil & gas?

Using the narrowest direct measure, oil & gas production accounts for 15% to 20% of Russia’s GDP …. down from a high of 25% when oil prices were sky high.

More broadly about 60% of  Russia’s national budget depends on duties and taxes attributable to the oil and gas sector directly or indirectly. Source

Bottom line: Sen. Graham is directionally corrt.

Russia’s economy is relative small and heavily dependent on oil & gas.

Which make’s you wonder why Germany — if it really views Russia as a significant geo-political threat — is propping up the Russian economy with its oil and gas purchases.

Maybe President Trump has a point!

============

Follow on Twitter @KenHoma

>> Latest Posts

#HomaFiles

One Response to “Is Russia really “an oil and gas company masquerading as a country”?”

  1. LosLobos Says:

    That’s one way to see it. Another is called “mutualism,” yet another is how most economists view trade: nations with strong trade relationships don’t go to war with each other lest they wreck themselves

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s