World Desk, AnyTV, Hong Kong
Published by: Harendra Chaudhary
Updated Thu, 24 Feb 2022 05:58 PM IST
Summary
Sanctions were first imposed on Russia in 2014, when it annexed Crimea. Analysts say that the result of those sanctions is that Russia is now exporting the most to China. Russia this week recognized Ukraine’s separatist republics of Donetsk and Lugansk as separate countries.
There is a growing fear in Western countries that if the US becomes more involved in the Ukraine crisis, then China can take advantage of that opportunity to take action to get Hong Kong itself. Apart from this, China is expected to benefit from the Ukraine crisis on many other fronts. Whereas Russia is unlikely to suffer much from sanctions.
Former US trade negotiator Harry Broadman said in an interview to a news agency that the macroeconomic sanctions being imposed on Russia will increase trade without the use of dollars in the world. Especially such business will increase between Russia and China. Brodman, who also worked in the World Bank, said- ‘Russia is an oil producing country. The problem with banning such a country is that it will widen the hole in the current system. In this situation, oil will be available to China on easy terms.
Most exports to China
Sanctions were first imposed on Russia in 2014, when it annexed Crimea. Analysts say that the result of those sanctions is that Russia is now exporting the most to China. Russia this week recognized Ukraine’s separatist republics of Donetsk and Lugansk as separate countries. After that America, European Union and Britain have imposed many new sanctions on him. On Thursday, Russia announced the launch of military action inside Ukraine. It is understood that after this Western countries will impose even more restrictions on it.
The latest sanctions imposed by the US have mainly targeted individuals linked to the Russian government and their families. Apart from this, the US has also imposed sanctions on the company making Nord Stream-2, a gas pipeline made from Russia to Germany. The US, EU and UK have said that their latest sanctions will deprive Russia of western trade. He will not be able to take loan from there.
The US has said that more than 80 percent of Russia’s foreign exchange transactions take place in the US. Transactions related to his business are done in dollars. All these will now be stopped. US President Joe Biden has said – ‘We will take such concrete steps that the loss of our sanctions is to the Russian economy, not us’.
Inflation will increase in Europe
But many experts say bringing the Russian economy to a halt is not easy. Russia is a large economy of $1.5 trillion. It is one of the major products of crude oil, natural gas, copper, aluminum, palladium and many other commodities. As soon as the news of the ban on the Nord Stream-2 pipeline came, former Russian President Dmitry Medvedev said in a tweet that now Europe should be ready to buy gas at double the price.
Crude oil and gas prices have skyrocketed around the world due to increased tensions in Ukraine and sanctions imposed on Russia. Russia’s dependence on international trade has declined over the past 20 years, according to data from the World Bank’s World International Trade Solutions Database. Then the importing countries from here have also changed. Once Russia used to export the most to the Netherlands. Now this place has been taken by China.
Expansion
There is a growing fear in Western countries that if the US becomes more involved in the Ukraine crisis, then China can take advantage of that opportunity to take action to get Hong Kong itself. Apart from this, China is expected to benefit from the Ukraine crisis on many other fronts. Whereas Russia is unlikely to suffer much from sanctions.
Former US trade negotiator Harry Broadman said in an interview to a news agency that the macroeconomic sanctions being imposed on Russia will increase trade without the use of dollars in the world. Especially such business will increase between Russia and China. Brodman, who also worked in the World Bank, said- ‘Russia is an oil producing country. The problem with banning such a country is that it will widen the hole in the current system. In this situation, oil will be available to China on easy terms.
Most exports to China
Sanctions were first imposed on Russia in 2014, when it annexed Crimea. Analysts say that the result of those sanctions is that Russia is now exporting the most to China. Russia this week recognized Ukraine’s separatist republics of Donetsk and Lugansk as separate countries. After that America, European Union and Britain have imposed many new sanctions on him. On Thursday, Russia announced the launch of military action inside Ukraine. It is understood that after this Western countries will impose even more restrictions on it.
The latest sanctions imposed by the US have mainly targeted individuals linked to the Russian government and their families. Apart from this, the US has also imposed sanctions on the company making Nord Stream-2, a gas pipeline made from Russia to Germany. The US, EU and UK have said that their latest sanctions will deprive Russia of western trade. He will not be able to take loan from there.
The US has said that more than 80 percent of Russia’s foreign exchange transactions take place in the US. Transactions related to his business are done in dollars. All these will now be stopped. US President Joe Biden has said – ‘We will take such concrete steps that the loss of our sanctions is to the Russian economy, not us’.
Inflation will increase in Europe
But many experts say bringing the Russian economy to a halt is not easy. Russia is a large economy of $1.5 trillion. It is one of the major products of crude oil, natural gas, copper, aluminum, palladium and many other commodities. As soon as the news of the ban on the Nord Stream-2 pipeline came, former Russian President Dmitry Medvedev said in a tweet that now Europe should be ready to buy gas at double the price.
Crude oil and gas prices have skyrocketed around the world due to increased tensions in Ukraine and sanctions imposed on Russia. Russia’s dependence on international trade has declined over the past 20 years, according to data from the World Bank’s World International Trade Solutions Database. Then the importing countries from here have also changed. Once Russia used to export the most to the Netherlands. Now this place has been taken by China.