Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Crimea Situation: Potential Damage to Russian Economy

admin by admin
March 28, 2014
in Uncategorized
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

by MXT Global

In response to the recent Russian invasion of Crimea, President Obama extended sanctions against Russia. The initial sanctions include blacklisting several wealthy businessmen who are close to President Putin and one of the country’s major banks. President Obama’s plan is to place economic pressure on the invading country. The targeted sanctions are unprecedented as this type of action wasn’t even done during the cold war. The following is a run down of the major factors and their repercussions.

The United States has placed sanctions against President Putin’s chief of staff, Sergei B. Ivanov, and billionaire investor Gennady N. Timchenko because he is linked to Russia’s president. In addition, America has sanctions against Yuri V. Kovalchuk who is a personal banker for several of Russia’s leaders. The European Union, or EU, has also imposed limited sanctions against Russia.

President Obama has cleared the way to enact tougher measures against the most successful sections of Russia’s economy, which include its oil and natural gas exports. President Obama did confirm that the sanctions could upset the world economy, but the action may be necessary to dissuade Russia from continuing its occupation of Ukraine.

Italy, Spain and France have warned the United States about enacting strict sanctions against Russia because of the potential impact to the global economy. However, Germany’s Chancellor reported that her country would manage without the energy sources that Russia provides to support the sanctions.

Russia’s invasion into Ukraine has caused officials like the European Union foreign policy leader, Catherine Ashton, to express concern regarding the precarious position of Ukraine’s economy. Currently, Ukraine’s government officials are reporting that the country is in desperate need of funds to cover gas imports and avoid a debt default. The United States is considering a $1 billion loan to Ukraine while the EU has agreed to loan the country $15 billion to assist its economy.

If the United States and the EU decide to enact stricter sanctions, then the action could force Russia into a major economic recession. The reason that the restrictions could affect the economy so severely is because the country relies heavily on credit.

Business confidence in Russia and throughout Europe is already starting to decline from the Ukraine crisis. In addition, foreign financiers and banks are re-evaluating the risk of working with Russian investors. If confidence continues to plummet or if more sanctions are implemented, then Russian investors could lose an estimated $50 billion in capital.

Since Russia is entirely integrated into the world’s economy, a number of economic markets could be affected. However, the energy sector is especially vulnerable from the financial restrictions as Russia is currently the largest oil producer in the world. The country exports an estimated $160 billion in natural gas and oil. Furthermore, Russia supplies the EU with much needed energy sources. Just last year, the EU, Switzerland, Turkey, Norway and the Balkan countries acquired 30 percent of their natural gas from Russia.

The Moscow Interbank Currency Exchange, or Micex, recently dropped by 1 percent to close at 1,307.34, which is equal to the NASDAQ losing 500 points in one day. In particular, Russia’s blue chip stocks saw major declines. Visa and MasterCard reported that they have stopped servicing Bank Rossiya and SMP Bank due to the restrictions enacted by the U.S. and the EU. With the two major credit agencies in the mix, several of Russia’s other banks are facing credit card processing disruption. The credit situation will likely exacerbate Russia’s economic problems.

Standard & Poor’s and Fitch Ratings decreased the country’s credit rating to a negative standing while the Russian ruble is down 10 percent to the U.S. dollar. President Putin vowed to open an account with Bank Rossiya to have his presidential salary sent to the bank to support his country.

The EU kept its sanctions a secret to prevent those affected from making plans to move their funds. In addition, several EU countries intend to wean themselves from Russia’s energy sources and are planning a new energy strategy.

The Crimea occupation may affect Americans who have Russian interests. For instance, Boeing Inc. obtains a large amount of the titanium that it uses to construct its planes from Russia. The company also has contracts with Russian airlines for about 100 planes. General Electric Company does business in Russia as it sells medical equipment and leases airplanes. However, it remains unclear whether Ukraine’s situation will have an impact on the USD.

Russia’s power in the energy market gives the country a commanding negotiating tool, but if the country ceases its trade agreements with Europe, then it will lose a considerable amount of goods and services. Therefore, extended sanctions will likely cause significant harm to Russia’s economy.

Previous Post

Market Commentary: Markets Open Up, Blamed on USA Economic Strength

Next Post

February 2014 Real Personal Income and Expenditures Have Good Growth

Related Posts

Bitcoin Mining Revenue Rises 50% To $23M In A Month
Business

Bitcoin Mining Revenue Rises 50% To $23M In A Month

by John Wanguba
January 30, 2023
U.S. Inflation Roller Coaster Sparks New Outlook On Long-Ignored Money Supply
Econ Intersect News

U.S. Inflation Roller Coaster Sparks New Outlook On Long-Ignored Money Supply

by John Wanguba
January 30, 2023
Bitcoin Adoption Of Guatemalan Merchants Increases A BTC Tattoo At A Time
Business

Bitcoin Adoption Of Guatemalan Merchants Increases A BTC Tattoo At A Time

by John Wanguba
January 30, 2023
US Economy Recorded Robust Growth In Q4, But With Underlying Weakness
Economics

US Economy Recorded Robust Growth In Q4, But With Underlying Weakness

by John Wanguba
January 30, 2023
Morgan Stanley Fined Staff Up To $1 Million For WhatsApp Breaches – Source
Business

Morgan Stanley Fined Staff Up To $1 Million For WhatsApp Breaches – Source

by John Wanguba
January 30, 2023
Next Post

February 2014 Real Personal Income and Expenditures Have Good Growth

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe finance FTX inflation investment market analysis markets Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia technology Tesla the UK the US Twitter

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Bitcoin Mining Revenue Rises 50% To $23M In A Month
  • U.S. Inflation Roller Coaster Sparks New Outlook On Long-Ignored Money Supply
  • Bitcoin Adoption Of Guatemalan Merchants Increases A BTC Tattoo At A Time

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish