Step away from the headlines and media coverage of the Russian invasion of the Ukraine for a moment….
Turn to the financial media….
The story there is a bit different ….
The sanctions and abandoning of contact with Russian business’s is a different story….
We live in a global economy now and blocking access to any part of that system causes problems….
President Biden and the West have NOT blocked Russian energy sectors…..
Several large energy companies have said they will walk away from Russian dealing with Russian energy sectors , but one might doubt that will be permeant or even go thru….
Guess who would buy those investments at a depressed prices?
Russia supplies oil energy to Europe and not just that …It also supplies food and othe products….
Despsite the stopage in the Nord 2 pipelione to Germany right now?
One could bet that sometime in the future ?
They will turn on the flow of oil from Russia. thru that system..
Oil and gas prices across the West are already climbing…
And other products exported from the mamoth Russian terrortitories…..
President Biden is pledging top help get energy to Europe from other sourecs , but OPEC isn’t gonna increase supply since they are making more money against the Russioa boycott’s…
The acxtions that the media are reporting right now taken against Russia are affecting the Russian PEOPLE….
Not the countries leader…
One should be very aware of this…
Even Biden and the European leaders are ….
How will Putin react to this ?
The sanctions were designed to avoid disrupting essential energy exports, which Europe, in particular, relies on to heat homes, power factories and fill gas tanks. That helped dampen, but did not erase, a surge in energy prices caused by war and anxieties about disruptions in the flow of oil and gas.
Worries about shortages also pushed up the price of some grains and metals, which would inflict higher costs on consumers and businesses. Russia and Ukraine are also large exporters of wheat and corn, as well as essential metals, like palladium, aluminum and nickel, that are used in everything from mobile phones to automobiles.
Already eye-popping transport costs are also expected to soar.
“We are going to see rates skyrocket for ocean and air,” said Glenn Koepke, general manager of network collaboration at FourKites, a supply chain consultancy in Chicago. He warned that ocean rates could double or triple to $30,000 a container from $10,000 a container, and that airfreight costs were expected to jump even higher.
Russia closed its airspace to 36 countries, which means shipping planes will have to divert to roundabout routes, leading them to spend more on fuel and possibly encouraging them to reduce the size of their loads…
In Russia, the central bank and government took a series of actions, including doubling a key interest rates to 20 percent to increase the ruble’s appeal, barring people from transferring money to overseas accounts, and closing the stock market to contain the damage and tamp down panic.
“What’s happening right now is we’re looking at the dismemberment of one of the largest economies on the planet,” said Carl Weinberg, chief economist at High Frequency Economics. “And from what I know about tactics, this is a dangerous tactic.”…