The Coming Energy Shock
Some commentators are comparing the current Russian aggression against Ukraine to Hitler’s invasion of Poland in August 1939. Here’s another analogy that could be more accurate: In 1979, upheavals in the Middle East sent energy prices soaring—and Western economies tumbling.
Russia is the world’s No. 3 exporter of oil, and its No. 2 exporter of natural gas. If Western countries respond to Russia’s invasion by imposing sanctions, Russia’s obvious countermove is to retaliate by cutting back fuel sales.
[Read our ongoing coverage of the Russian invasion in Ukraine]
Such a move would hurt Russia too. But Vladimir Putin has carefully prepared for the shock—and of course Russian citizens have learned that it’s dangerous to complain.
The state of the energy
