War is expensive. It costs lives, loss of infrastructure, problems with the food supply, and a basic disruption of everything when it occurs. Unfortunately, it is also profitable for some people. It should also be noted that those who declare war are rarely the people called to fight the war they declare.
Russia invaded Ukraine in 2022. Since that time, America has given roughly $175 Billion dollars to Ukraine to fight that war. President Trump is now in the process of attempting to end that war.
Who is profiting from that war? Obviously, the defense industry’s weapons making business is doing well—they have to replace the weapons being used. But there seem to be other people profiting from the war as well. President Zelensky claims that Ukraine has only actually received $75 Billion. I have heard reports that the difference is simply a bookkeeping technicality, but I am not necessarily convinced of that.
Let’s look at some of the things that made it possible for Russia to invade Ukraine. Russia invaded Ukraine in February 2022. The price of a barrel of oil in February 2022 was $107.69. To provide some perspective, in January 2021, when President Biden took office, oil was selling for $63.68 a barrel. Because of the Biden administration’s energy policies which ended American energy independence, by February 2022 the price of a barrel of oil was $107.69. The Russian economy is dependent on oil exports. Oil prices are determined internationally. The Organization of the Petroleum Exporting Countries (OPEC) has some control over oil prices, but that control lessens when America is exporting oil. Because the Russian economy is dependent on oil exports (and thus dependent on the cost of a barrel of oil), when the price of oil falls, Russia experiences fiscal deficits, a weaker economy, and a weaker currency. When President Trump was in office, the price of oil was low, and Russia could not afford to invade Ukraine. The invasion of Ukraine had to do with a weak President (President Biden), but it also had to do with the escalating price of oil. That is no longer the case. Oil prices today are roughly $70 a barrel.
It is quite possible that we will see the war in Ukraine end in the coming weeks. To some degree that is due to the negotiating skills of President Trump, but it is also due to the economic and energy policies of President Trump. We are learning that putting a man in the White House with business skills will help all Americans economically as well as pave the way for peace by using economic leverage.