Russia's main equity index, RTS, dropped 6.7% today as Putin said that oil production may need to be scaled down as it considers diverting oil from Belarus completely. If this was to happen:
- All Russian oil companies will have to cut production because they don’t have enough storage capacity (Lukoil is down 9% today because of this).
- Belarus would be nearly bankrupted and have no energy and its government would be lynched.
- All countries serviced by the Druzhba pipeline would be screwed as well since Russia has no immediate way to supply them.
- After the new pipeline is built there’s no telling if Europe would still want anything to do with Russia.
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