HOW MUCH DOES THE US EARN FROM THE WAR IN UKRAINE?

1 year ago
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Now, I will show you with specific figures that the US profits from the war between Russia and Ukraine far exceed the costs.
The German research institute in Kiel calculated $92 billion in inflows to Ukraine from January to October 2022. The White House was the main source of these funds. No country in the world spends as much money on Ukraine as the United States. It is hard to disagree with that. Without American assistance, Ukraine would most likely have ceased to exist. What force compels Washington to help Kyiv?
First and foremost, it's geopolitics. It's no secret that Russia is the number two enemy for the US. Therefore, Washington is interested in having friendly countries near Russia's borders. As long as Russia is surrounded by US allies, Washington can breathe easy. Thus, preventing Ukraine from being captured is one of America's main geopolitical objectives.
Secondly, since the US stands guard over global democracy, Washington cannot allow Ukraine to be taken over by the totalitarian Russian regime. Undoubtedly, all of this is very important and cannot be measured in terms of money. But what about the actual numbers? Watch this video to the end, and you will learn the specific amount by which the US income has increased due to the war in Ukraine.
Reshaping the energy resource market
After Russia's full scale invasion of Ukraine, there began a global reshuffling of resources. This was primarily due to the imposition of economic sanctions on the Russian Federation because of the war in Ukraine. The restrictions mainly affected the energy resource market.
US revenue from the increase in deliveries of liquefied natural gas to Europe
As a result of the sanctions, Russia lost its traditional natural gas markets. Naturally, this market was quickly occupied by other countries, including the US. However, the prices that Europeans pay for American liquefied gas are nearly four times higher than those in the United States.
According to the Financial Times in January, the European Union became the largest buyer of liquefied natural gas in the world in 2022, surpassing China, Japan, and South Korea. The International Energy Agency noted that in June of last year, US shipments of liquefied gas to Europe exceeded Russian Gazprom's exports to Europe for the first time. In November, the US State Department stated that 70 percent of all American company shipments go to Europe.
Prominent European officials are angry with the Biden administration and accuse the US of profiting from the war while EU countries suffer. "The fact is that if you look at this soberly, the only country benefiting the most from this war is the US because they sell more gas at higher prices and because they sell more weapons," an unnamed European official told Politico.
Leaders in Brussels and other European capitals are running out of patience. French President Emmanuel Macron said that high prices for American gas are not friendly. Germany's Minister of Economy called on Washington to demonstrate greater solidarity and help reduce energy costs. Ministers and diplomats are puzzled that the Biden government simply ignores the impact of American economic policies on allies in Europe.
In 2021, the US exported 47 point 8 million cubic meters of gas to Europe, and the sharp increase was due to the Russian invasion of Ukraine, according to a report by the White House Council of Economic Advisers published in March 2023. Gas exports from the US significantly increased as Russia restricted its once dominant pipeline deliveries of natural gas, the report states. As a result, liquefied natural gas exports from the US to Europe grew by 2 point 5 times to 117 million cubic meters in 2022.
This means that the volume of US liquefied gas shipments increased by 70 million cubic meters. Considering that the price of liquefied gas is around $400 per cubic meter, we are talking about $28 billion. Yes, that's how much the US increased its liquefied gas shipments to Europe in 2022. Naturally, as long as the war continues and sanctions are in place, American liquefied gas will enjoy higher demand in Europe than Russian gas, despite the sky high prices.
In addition to that, cheaper energy has quickly become a competitive advantage for companies in the US. Businesses are planning new investments in America or even relocating their operations from Europe to American factories.

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