Russian economy cripples under the very severe Western sanctions. The former Soviet union has threatened to retaliate in that measure.
Russia started a war in Ukraine more than a week ago. The Russian President, Vladimir Putin, said Russian forces would be in Ukraine for a “special military operation”.
The Western allies didn’t consider confronting Russia in Ukraine specifically. They choose to fight Russia economically. Therefore, they put sanctions on Moscow.
Yesterday the President of United States Joe Biden announced a ban on the Russian crude oil and gas. Russia is one of the largest producers of crude oil in the world.
The sanction came amidst several other ones on Russia. The step would severely affect Russian economy and put it in shambles.
The president said, “Today, I am announcing the United States is targeting the main artery of Russia’s economy.”
Oil and gas account for the largest source of revenue of the former Soviet union. Hence, President Joe Biden announced, “We’re banning all imports of Russian oil and gas energy.”
Oil company, Shell, had announced its withdrawal from Russia. The decision followed the ban or sanctions announced by the POTUS Joe Biden. Shell is just one of the several other companies to part ways with Russia.
The Dutch brewery company, Heineken, has left Russia. McDonalds has announced its departure as well. MasterCard and Visa aren’t dealing with Russia anymore.
This has left many Russians stranded or cash strapped abroad. French brands and other top companies are leaving Moscow.
The New York Times reported that Russian currency, ruble, continues to fall sharply on Wednesday. The newspaper reports that ruble sells at 117 to the US dollar in the country.
Authorities in Russia don’t allow a withdraw of more than $10,000. Other money must be in ruble. Vladimir Putin has not openly complained about the crippling Russian economy.
But there is no doubt that the sanctions have effects on Russia. The Russian economy cripples under sanctions.
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