Azerbaijan news

Moscow is bombing Kiev, and the world is bombing the Russian economy


On February 24 Ukraine to Russia since the occupation of its territory snowEconomic sanctions have been imposed. EuropeNorth America and Many advanced Asian countries have joined the sanctions. Along with the states, private companies are also ceasing operations in Russia. Dozens of global companies operating in various fields, from information technology to the clothing sector, have decided to suspend operations in Russia. 1 trillion 700 billion One of the most debated questions today is how much Russia, the world’s 11th largest economy with a gross domestic product of about $ 1 billion, can tolerate these sanctions.

Big losses in the financial sector

One of the most effective sanctions Russia Central Bankis the freezing of assets. The most recently announced figures according to, Russia Central Bankassets 630 billion close to a dollar. It is clear from the official information that, Central BankAbout half of Russia’s foreign exchange reserves snowdetained in countries that have imposed sanctions. Information for the second half of last year according to21.7 percent of Russia’s foreign exchange reserves are in gold, 13.8 percent in China, 12.2 percent In France, 10 percent in Japan, 9.5 percent in Germany, 6.6 percent in the United States, 5 percent in international financial institutions, 4.5 percent in the United Kingdom, 3 percent in Austria, and 2.8 percent in Canada.

Need to take into account that, Along with the Central Bank, private commercial banks operating in Russia have also faced sanctions. According to the Bank for International Settlements according tothe amount of funds held by Russian customers in foreign banks 128 billion dollars. Russian customers spend the most money on SocGen (France), Raiffeisen (Austria), UniCredit (Italy) Europe keeps in banks. But this should not be overlooked that, foreign banks also have about 121 billion customers in Russia dollars amount credit gave. From this point of view, both Russian clients ‘funds in foreign banks and foreign banks’ funds in Russia are approximately equal. But it must be taken into account that, loss of funds in this amount Russia can be considered a more serious loss for the economy. After all, the funds held by Russian customers in foreign banks are about 9% of Russia’s total domestic funds. On the other hand, all foreign bank loans in Russia Europe If we assume that these funds belong to the countries (121 billion dollars) Less than 1 percent of the European Union’s gross domestic product (more than $ 15 trillion).

Visa, one of the world’s largest payment systems, is among those imposing sanctions on the financial sector. and There is also a Mastercard. From now on, cards belonging to Russian banks will not work in foreign countries. Foreign bank cards will not work in Russia in the same way. Thus, the cards of Russian banks will be considered valid only for domestic payments.

The mass withdrawal of funds from banks is also a blow to Russia’s financial sector. On February 24 alone, on the first day of the war, customers withdrew 111 billion rubles from Russian banks. This means more than 2 billion manat at the exchange rate of that day.

It should be noted that, In addition to foreign sanctions, Russia’s economic policy agencies have begun to take steps to tighten market regulation. For example, already 30 percent of the country’s citizens buy foreign currency tax will have to pay. In addition, the Russian Finance Ministry has ordered all exporters to sell 80 percent of their currency. The Central Bank is a foreign individual and banned legal entities from selling securities held in Russia. Discount rates in the country have more than doubled and From 9.5 percent 20 percent delivered.

The Russian economy needs the West more

The fact that European countries impose such easy economic sanctions on Russia is also due to the fact that Russia does not play an important role in the exports of these countries. Russia has a double-digit share (13 percent) in Lithuanian exports in the eurozone. Latvia and In Estonia, the figure is about 8 percent, in Finland 5 percent, and in Slovenia 3 percent. In all other countries, exports to Russia are less than 2 percent. But it must be taken into account that, Of Europe gas About a third of its imports come from Russia.

On the other hand, Western countries are very important for Russia’s exports. Because half of the country’s exports are to the United States and the European Union and It falls to the United Kingdom. In different areas, this figure varies between 30-90 percent. Let’s say for comparison that, The share of the Eurasian Union countries, in which Russia plays a key role, in exports is total 10 is around interest. The same situation prevails in terms of currency. Russia accounts for 85 percent of exports and 66 percent of imports dollars and carried out in euros. Let `s note that, China, Germany, Belarus, the United States, Italy, Japan, respectively, are the countries that Russia imports the most goods. France and It is South Korea. This 10 eight from the country to Russia snowhas joined the sanctions.

It is one of the most difficult areas in Russia weather ways. Many European countries have their own weather As it closes its territory to Russia, flights are operated on alternative routes that, it’s also more time consuming and causes financial loss. Another problem is with the planes themselves. So. that, According to Forbes according to515 of the 980 aircraft owned by Russian civil aviation and or 53 percent were leased from foreign leasing companies. Due to the current situation, these leasing companies are gradually recalling their aircraft. At the same time, international insurance companies are refusing to renew aircraft insurance. As a result, some planes are unable to return to Russia. The Russian government wants to nationalize leased aircraft if the conflict deepens. However, in this case the maintenance of aircraft and there may be a problem with the supply of spare parts. (Radio Liberty)

Azerbaijan news

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