G7 finance ministers began a second day in Paris to discuss rising energy prices and economic sanctions. The goal is to contain the impact of previous decisions, although speeches point to external factors as scapegoats. No one expects self-criticism.
The technical cost of sanctions on the supply chain 🔧
Restrictions imposed on energy suppliers have fractured logistics routes established over decades. Dependence on alternative sources, such as US LNG, requires port and regasification infrastructure that is not operational in the short term. Economic simulation models show that forced decoupling raises transaction costs by an average of 30%, without equitable distribution among bloc members.
Blame the climate, the market, or the neighbor: any excuse will do 🃏
Like in a poker game where everyone loses but no one admits their hand, ministers point to Russia, OPEC, or climate change. No one mentions that shutting down nuclear plants or relying on a single chip supplier were their own decisions. The next meeting will surely seek a new culprit: perhaps solar wind.