During his recent public appearance, Russia’s president called western sanctions rubbish and thoughtless. He said all those western sanctions had no chance against Russia. Most of the sanctions tighten Russia’s economic power. He is calling it more harmful for western countries.
Western countries are trying to put things in order. However, they are having a hard time standing affirming with Ukraine with those western sanctions.
Putin made an appearance at the St. Petersburg International Economic Forum. He explained that the EU would be losing $400bn due to the western sanctions.
There is an increase in the interest rate, and people’s purchasing power is going to go down.
However, at the same time, Russia is also facing an economic markdown due to western sanctions. As a result, almost 15% of the country’s GDP is at threat, as per the Central Bank Governor Elvira Nabiullina.
The hope of recovery of the economic conditions in Russia is quite low. Things are going to stay pretty same for some time. Sberbank also cautioned about Russia’s dipping economy. It stated that it would take almost 10 years to reach 2021 levels in Russia.
However, Putin is bringing a more optimistic story to implore businesses in the country. He said that it is better to invest in your own country. However, he also cautions of the loss one can incur in investing abroad.
He also cautioned the world about the global food crisis. Due to the ongoing war between Russia and Ukraine, there is a blockade on ample production. Ukraine dominates the World in producing grain along with Russia. But, as its ports are being blocked, it is not able to export.
The war is still on between the two nations. Ukraine’s city, Severodontsk, is witnessing a power struggle between two countries. It has been Russia’s target from the very beginning. Russia’s economy is suffering a lot with the ongoing war and the western sanctions.
Credits: BBC
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