source

The conflict between Ukraine and Russia has generated economic sanctions against Russia by the Western world, these sanctions are putting Russia in serious economic problems and we are going to analyze the panorama a little.

Russian exports have been prohibited, air spaces have been closed, goods have been seized from Putin supporters, Russian banks have been disconnected from the Swift system, the European Central Bank reported the freezing of Russian international reserves to this serious situation, add it that companies are making sanctions on their own because Disney and Netflix do not broadcast in Russia and Coca-Cola and Pepsi-Cola have decided to leave Russia.

Apart from the sanctions, it must be added that the European Union plans to reduce the purchase of Russian gas, added to the fact that Shell and exón mobile ceased operations in Russia, to this is added the executive order signed by President Joe Bidden to prohibit hydrocarbon exports to Russia and any type of American investment in Russian territory.

source

The United States imports 8% of the oil from Russia, but this will not be possible now, but this luxury cannot be afforded by the European countries that depend on Russian hydrocarbons. England supported the boycott against Russian oil, but Germany did not support it. You need Russian oil.

The solution for Russia is to sell to China but that is not so simple, China demands cheaper prices and Russia needs money at this time, but the reality is that China, despite being a giant of energy consumption, does not need Russian oil.

Elvira Nabiúllina, president of the Russian central bank, declared the situation as dramatic in the first week of March 2022, since the sanctions are destroying the Russian economy, Elvira spoke of the difficulty in using gold reserves and the devaluation of the Ruble, Elvira confirm that Western sanctions are having the effects for which they were created.

source

For what Elvira proposes to increase the interest rate by 20%, this does not guarantee an improvement when the United States tries it even in the 80s the problem worsened and the same could happen in Russia, it is possible that this measure will accelerate the recession in Russia.

We will continue the topic of economic sanctions against Russia in a second publication.