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    Home » How Russia Will be Hit by Sanctions Over Ukraine Conflict
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    How Russia Will be Hit by Sanctions Over Ukraine Conflict

    February 23, 20221 Min Read
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    The Russian economy is predicted to take a hit from global sanctions following its planned takeover of Ukraine, but the country is gearing to protect itself from the repercussions.

     

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    • Majority of Russia’s export revenue is driven by mineral products, with the European Union reliant on the country for its gas imports. Germany on Tuesday unveiled plans to stop opening the Nord Stream 2 which would boost Russian shipments.

     

    • Russia’s capacity in aerospace, artificial intelligence, and other tech sectors will also be impacted by plans of the United States to ban exports of US-made technology, following the geopolitical tensions involving the country.

     

    • Russia is working to safeguard its fiscal position to offset any economic hits, as it reduced its debt with countries such as the United States, along with its allies in Europe.

     

    • The country has also built up its gold and foreign currency reserves, which could support the ruble should sanctions impact the currency or help finance the government expenses. 

     

    The geopolitical conflict between Ukraine and Russia could impact the global economy moving forward, amid inflation and supply constraints.

     

    ERUS is down 4.05% premarket.

    Source: WSJ

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