The small companies sometimes yearly yeah, but the large ones want to keep a baseline level of production going no matter what the price or demand is because it costs money to stop and start.
In fact they seem to be trying to keep that from happening right now.
The measure is eating into Kremlin fossil fuel export profits and exacerbating a ballooning budget deficit amid Russia's war in Ukraine.
www.newsweek.com
Once you realize we have developed the tools to crash the Russian economy you also realize it's not smart to go all the way with it. Thomas Graham was Director of Russian Affairs during the Bush years and I thought it was interesting what he said about it:
View: https://youtu.be/uqjyjDvASqE?t=897
"We need to structure our sanctions in a way that doesn't totally cripple the Russian economy over the long term. We don't want to see the cratering of the Russian economy. We need a country for our own purposes that might not be as strong as the Soviet Union was to challenge us, but not so weak that it can't govern in an effective fashion the vast territory that it occupies and controls at this point." -Graham
He says that the issues of how far we alienate Russia and how far we cripple Russia are 2 big issues that are being debated in Washington today and he doesn't think they've reached a firm conclusion yet. He says the goal is to keep Russia from funding its war while keeping the oil flowing and without creating the kind of security, economic and humanitarian issues a total collapse would cause.
There was in fact a decade long effort, though it is criticized for not being robust enough or successful enough:
"The IMF lent $3 billion to Russia in 1993–94 in the form of a Systematic Transformation Facility, followed by a $6.5 billion standby loan in 1995, and a three-year loan, $18.5 billion Extended Fund Facility in 1996. The World Bank lent $7.8 billion to Russia in the 1990s for 33 projects, focusing on private sector development and infrastructure reform (such as the privatization of the coal industry) (Rutland, 2012)."
"In 1992 and 1993, all bilateral creditors provided a total of US$36 billion of financial assistance, with the G-7 accounting for the bulk of it (Citrin and Lahiri, 1995, Table 7.5)."
"In the 1990s, many Westerners saw Russians as victims of Soviet oppression who deserved help. International donors provided tens of billions of dollars in aid to Russia. U.S. Operation Provide Hope sent $5 billion in humanitarian aid to Russia and other former Soviet republics."
In the 1990s, after the breakup of the USSR, the West adapted to and helpfully influenced the birth of 15 new republics. If liberalizing change comes anew, the West may seek to help Russia heal itself for the long term.
www.rand.org
"The term "shock therapy" refers to a set of radical economic reforms aimed at rapid economic stabilization, liberalization, privatization and the opening of the economy to international trade. Shock therapy was pioneered in Bolivia and was then carried over to Poland and Russia with varying degrees of success. The policies of shock therapy provoked much debate that centered on whether or not the final achievements justified the pain that accompanied such radical restructuring. Below, the key architects of the reform in the three countries reflect on pros and cons of shock therapy and compare the results."
