Has Global Sanctions on Russia Worked?

Has Global Sanctions on Russia Worked?

Have ๐†๐ฅ๐จ๐›๐š๐ฅ ๐’๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ฌ on #Russiaย byย #USย andย #EUย worked, or have the sanctions impacted emerging economies?

As i look at the global commodities markets and soaring inflation, one thing is sure – In this globalised world, it is ๐ก๐š๐ซ๐ ๐ญ๐จ ๐ข๐ฌ๐จ๐ฅ๐š๐ญ๐ž ๐š ๐œ๐จ๐ฎ๐ง๐ญ๐ซ๐ฒ ๐ฅ๐ž๐ ๐ข๐ฌ๐ฅ๐š๐ญ๐ข๐ฏ๐ž๐ฅ๐ฒ ๐›๐ฒ ๐ข๐ฆ๐ฉ๐จ๐ฌ๐ข๐ง๐  ๐ฌ๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ฌ. In the recent war on Ukraine, the US/EU imposed sanctions on Russia, hoping that sanctions would deter Russia and compel it to stop the fight.

As of 25th May 2022, the following has happened:

1)Russia contributes 14% of crude oil supply globally and is the second-largest natural gas producer. However, due to sanctions, oil trades at $๐Ÿ๐ŸŽ๐Ÿ—/๐›๐š๐ซ๐ซ๐ž๐ฅ ๐š๐ญ ๐š ๐Ÿ’๐Ÿ“% ๐ฉ๐ซ๐ž๐ฆ๐ข๐ฎ๐ฆ before the war. ๐‡๐ข๐ ๐ก๐ž๐ซ ๐จ๐ข๐ฅ ๐ฉ๐ซ๐ข๐œ๐ž๐ฌ ๐ฅ๐ž๐š๐ ๐ญ๐จ ๐ก๐ข๐ ๐ก๐ž๐ซ ๐Ÿ๐ซ๐ž๐ข๐ ๐ก๐ญ ๐œ๐จ๐ฌ๐ญ๐ฌ across land and the ocean.

2)Imposing sanctions led to ๐ก๐ข๐ ๐ก๐ž๐ซ ๐ ๐š๐ฌ ๐ฉ๐ซ๐ข๐œ๐ž๐ฌ ๐ฅ๐ž๐š๐๐ข๐ง๐  ๐ญ๐จ ๐ก๐ข๐ ๐ก๐ž๐ซ ๐Ÿ๐ž๐ซ๐ญ๐ข๐ฅ๐ข๐ณ๐ž๐ซ๐ฌ ๐œ๐จ๐ฌ๐ญ ๐š๐ฌ ๐š๐ฆ๐ฆ๐จ๐ง๐ข๐š: a base for all fertilisers can get efficiently produced from natural gas.

3)๐–๐ก๐ž๐š๐ญ, ๐œ๐จ๐ซ๐ง, ๐š๐ง๐ ๐ฌ๐ฎ๐ง๐Ÿ๐ฅ๐จ๐ฐ๐ž๐ซ ๐จ๐ข๐ฅ ๐œ๐จ๐ฌ๐ญ๐ฌ ๐ก๐š๐ฏ๐ž ๐ฌ๐จ๐š๐ซ๐ž๐ because Ukraine, a leading producer of the above food commodities, cannot supply them due to war.

4)Russia’sย Gazprombank continues receiving oil payments from the EU countries. For lower volumes, Russia has significantly hiked oil prices leading to minimal impact on its revenues from oil.

๐’๐จ ๐ญ๐ก๐ž ๐ช๐ฎ๐ž๐ฌ๐ญ๐ข๐จ๐ง ๐ข๐ฌ – ๐‡๐š๐ฏ๐ž ๐ฌ๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ฌ ๐ก๐ฎ๐ซ๐ญ ๐‘๐ฎ๐ฌ๐ฌ๐ข๐š?

๐ˆ๐ง ๐ฆ๐ฒ ๐ฏ๐ข๐ž๐ฐ – ๐๐Ž.

The emerging markets or developing countries with substantial existing debt that cannot borrow money at higher costs to import commodities are the worst hit.

COVID-induced shocks might be a natural calamity, but war and subsequent sanctions are us shooting ourselves in the foot, resulting in a potential slowdown or a global recession.



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  • […] especially those that do production and drilling. Thus, ironically, ๐‘๐ฎ๐ฌ๐ฌ๐ข๐š ๐ฐ๐จ๐ฎ๐ฅ๐ ๐›๐ž๐ง๐ž๐Ÿ๐ข๐ญ ๐Ÿ๐ซ๐จ๐ฆ ๐ญ๐ก๐ž ๐ข๐ง๐œ๐ซ๐ž๐š๐ฌ๐ž ๐ข๐ง ๐จ๐ข๐ฅ […]

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