Costs? US Sales To Russia Hit Record High After Sanctions

Tyler Durden's picture




 

While it is all too easy to show the massive outperformance of Russian stocks (even after Carney's "sell" recommendation) as evidence that US sanctions were not 'punishing' as the mainstream media might suggest; this week's release of trade data shows the utter farce that the so-called "costs" imposed on Putin actually are. As WSJ reports, despite all the scaremongery and sanctioning, US exports to Russia in May hit $1.2 billion - a record high (up 21% from pre-sanctions). That will certainly teach them!!

 

 

As WSJ reports,

U.S. efforts to penalize Russia for its actions in Ukraine appear to have done little to stem exports of U.S. goods to the country.

 

The U.S. announced targeted sanctions against several Russian companies and individuals in March, but U.S. trade data published Thursday shows exports to the country were the highest on record at $1.2 billion in May.

 

The sanctions, organized with Europe and other major industrialized nations over Moscow’s alleged actions to destabilize its former client state, sparked investor flight out of Russia, led the ruble to tumble and pushed the economy into a recession. Russian markets have since recovered somewhat, but investors have been wary of an escalation in the sanctions battle.

 

Demand for U.S. products apparently hasn’t been hit, however, and in fact jumped 21% from the previous month.

*  *  *

So much for those sanctions - need moar targeted sectoral ones to really teach them a lesson (oh wait - what about the boomerang?)

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Fri, 07/04/2014 - 16:56 | 4925409 International Jew
International Jew's picture

& what goods are being exported? 

Fri, 07/04/2014 - 16:57 | 4925415 Jumbotron
Jumbotron's picture

Truth.

Fri, 07/04/2014 - 17:16 | 4925459 International Jew
International Jew's picture

weapons...  probably XD

https://www.youtube.com/watch?v=jDT4wjyutGc

 

 

on a side note.  Watch it. http://www.youtube.com/watch?v=vxOB1j8_1dU

What's another red pill, you've taken so many already (warning, corny 80s as fuck)

Next thing you know, you'll try to deny there are ufos....

 

Fri, 07/04/2014 - 17:27 | 4925482 Escrava Isaura
Escrava Isaura's picture

I find this whole article misleading… at first glance. Check the link below and tell me I am wrong:

https://www.census.gov/foreign-trade/Press-Release/current_press_release/exh14.pdf

Fri, 07/04/2014 - 18:54 | 4925654 I Write Code
I Write Code's picture

Well, it shows higher in May than April, so what's the problem?

I also want to know what they're buying, mostly cuz I don't know what we're making anymore, other than airliners, weapons, computer chips, and Jack Daniels. 

Fri, 07/04/2014 - 20:22 | 4925803 Escrava Isaura
Escrava Isaura's picture

Write Code... I got your good point. I wish they told us what these exports were.

But, here's my question: What are we, twice as much, buying from them? I see nothing made in Russia around here.

Sat, 07/05/2014 - 01:18 | 4926087 mkhs
mkhs's picture

Caviar?

Fri, 07/04/2014 - 22:30 | 4925953 Jerk_Store
Jerk_Store's picture

 

I find this whole article misleading… at first glance. Check the link below and tell me I am wrong:

 

your chart shows that the usa sold 1,2 billion worth of crap and bought 2.1 billion worth of crap from russia in may 2014 

in april 2014 the usa sold 1 billion worth of crap and bought 2.3 billion worth of crap from russia 

why the confusion?

 

 

Sun, 07/06/2014 - 08:39 | 4928647 Escrava Isaura
Escrava Isaura's picture

Jerk_S...... You might have a point there....

Fri, 07/04/2014 - 16:59 | 4925419 agent default
agent default's picture

Pr0n? Either that or Beer. What else does the US make these days. Unless you count visits to Nevada brothels as exports.

Sat, 07/05/2014 - 00:20 | 4926039 jonytk
jonytk's picture

actually just the russian buying on amazon chinese products and getting rid of the USD...

Sat, 07/05/2014 - 07:48 | 4926233 doctor10
doctor10's picture

Savvy politics.  Putin making sure Congress has an earfull from USA business if somebody tries to go beyond jaw wagging.

Fri, 07/04/2014 - 16:56 | 4925412 Jumbotron
Jumbotron's picture

Kabuki theatre.  Same as it ever was.

Just two slave owners arguing about style differences in managing their slaves.

 

Fri, 07/04/2014 - 16:57 | 4925414 remain calm
remain calm's picture

They would sell their mothers.

Fri, 07/04/2014 - 17:01 | 4925429 booboo
booboo's picture

Dogs of War are making it rain in Russia and Lockeed Martin is jealous.

Fri, 07/04/2014 - 17:03 | 4925439 craus
craus's picture

What the US government says it what it does are often the opposite.

Fri, 07/04/2014 - 17:17 | 4925464 alexcojones
alexcojones's picture

Dancing with The Sanctions.

New TV show for the sheeple.

Fri, 07/04/2014 - 17:17 | 4925467 goldhedge
goldhedge's picture

NATO Stronk!

Fri, 07/04/2014 - 17:27 | 4925479 JohninMK
JohninMK's picture

So Europe can suffer from gas disruption but the good ol' USA will just keep on shipping is one way of looking at it. Creating more divisions in NATO.

The other is that Russia is converting its dollars into real things as fast as it can.

Another couple of Putin smiles.

Fri, 07/04/2014 - 17:29 | 4925486 DESMO_RR
DESMO_RR's picture

"After Carneys "sell" recomendation". Sure! Everyone listens to Carney. Because he's a real financial prodigy!

Fri, 07/04/2014 - 17:37 | 4925508 Circle of DNA
Circle of DNA's picture

The empire has no control over its own hands. You can almost see this giant spider called US kung-fuing itself senselessly into oblivion.

Fri, 07/04/2014 - 17:48 | 4925537 are we there yet
are we there yet's picture

My company sells equipment to Russia for many years now and we always follow tithe Us commerce department rules, but the public is not aware how contradictory, irrational to US interests the commerce department policies and deep penalties often are. Even worse, some of the policies I deal with are vague and open to reinterpretation after the fact with huge fines and prison time. Example, you can go to prison for 3 years and have a fine of $250,000 for selling a polygraph to china, but they have no restrictions in selling copies of our equipment back to the US or elsewhere. The real problem is sanctions are usually set by politicians for political 'flash' and not true Us interests. Then policies are not reviewed, but only randomly enforced by not so intelligent beaurocrats. Imagine the resergence in American business with a smaller older style government.

Fri, 07/04/2014 - 17:59 | 4925562 Winston Churchill
Winston Churchill's picture

Older style ?

You should have tried it back in the 1970's.

I used to import modified pdp 11 computers into europe back then,The hoops getting

the export licenses from the Commersce Dept. were something else.

It was easier selling Israeli plywod to Gaddaffi,which I also did,laminated with the blue stars

glued facing each other.

Fri, 07/04/2014 - 18:13 | 4925594 are we there yet
are we there yet's picture

Good story. It is impressive how America does as well as it does with our restrictions. Imagine what we could do with uncorrupt leaders following the forgotten constitution.

Fri, 07/04/2014 - 20:11 | 4925787 potato
potato's picture

Average Growth Rate 1961–1970: 2.88%
Average Growth Rate 1981–1990: 2.26%

vs

Average Growth Rate 1991–2000: 1.94%

 

Growth rate was 32% better in the 60s and 80s versus the growth rate in the 90s which gave us cell phones and the internet!

Fri, 07/04/2014 - 23:18 | 4926000 are we there yet
are we there yet's picture

Interesting, but why did you stop at the year 2000? I believe your trend downward has continued further now.

Fri, 07/04/2014 - 18:03 | 4925568 CrashisOptimistic
CrashisOptimistic's picture

Note that Saudi Arabia has bought US exports hand over fist for many decades, and there is some talk about KSA having decided to get dollars out of their hands as fast as they can -- in a mechanism designed to make sure they aren't trading oil for paper.  They are trading oil for things with function in their society.

Russia, perhaps ditto.  The US imports about 300K bpd of the black good stuff from Russia, and Russia may be just getting rid of those dollars as fast as they can in return for things that have function in their society.

Sat, 07/05/2014 - 01:32 | 4926098 HenryHall
HenryHall's picture

I agree. We are looking at the start of a worldwide trend in which countries simply want out of dollars and into something else - anything else - of real value. Most countries are buying more American exports and exporting less to America.

Because the outlook for the dollar is that the dollar becomes something you do not want to hold any longer than you need to.

Little known that there is one commodity in which the USA is still far and away a world leader. That commodity is paper, especially finished (sheets of) paper. Every country in the world uses lots and lots of sheets of paper, even today, with no end or slackening in sight.

Fri, 07/04/2014 - 18:13 | 4925596 orangegeek
orangegeek's picture

US selling materials and equipment for Nat Gas extraction and delivery

 

 

Fri, 07/04/2014 - 18:17 | 4925602 SpanishGoop
SpanishGoop's picture

Well just stop exporting to those Ruskies.

That will show them..o wait, $1.2 billion you said, never mind.

 

Fri, 07/04/2014 - 18:19 | 4925604 daedon
daedon's picture

The sanctions were against Russian oligarchs, American oligarchs still wanna earn money (they already "make" money).

Fri, 07/04/2014 - 19:20 | 4925690 ThisIsBob
ThisIsBob's picture

I would guess that Russia is selling Treasuries and buying pipe.

Fri, 07/04/2014 - 22:32 | 4925956 Jerk_Store
Jerk_Store's picture

I would guess that Russia is selling Treasuries and buying pipe.

 

Yeah, Putin likes to lay pipe

Sun, 07/06/2014 - 15:55 | 4929529 IronForge
IronForge's picture

To expand its current Export Mechanisms...

...outside of UKR.

Fri, 07/04/2014 - 19:47 | 4925749 Aussiekiwi
Aussiekiwi's picture

Same as it ever was.

Sat, 07/05/2014 - 01:47 | 4926109 syntaxterror
syntaxterror's picture

President Pouty Faggot must be in tears after seeing these stats. Or not.

Sat, 07/05/2014 - 10:42 | 4926406 directaction
directaction's picture

What do we buy from Russia that's worth $1.3B/mo? 

Sat, 07/05/2014 - 10:45 | 4926412 directaction
directaction's picture

Oh, nevermind, I forgot: manned and unmanned orbital launches. Russia's the only country still reliably doing that.

Wed, 07/16/2014 - 16:22 | 4964161 soylentgreenispeople
soylentgreenispeople's picture

Nasa ounce did this but congress stole their budget.

Sat, 07/05/2014 - 21:31 | 4927876 Rhal
Rhal's picture

I guess this shouldn't supprize me. The GOP lies about everything else, this is just their effort to stay consistent.

...and they both needed buyers for stuff other than weapons.

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