According to German war calculations by the Institute for World Economics (IfW) in Kiel, even if the EU imposes an oil embargo on Russia, there are still financial opportunities for long-term maintenance. “Hopes for a quick change in Russian policy in the war against Ukraine in connection with sweeping Western sanctions will most likely not come true,” Rolf Langhammer, an IfW trade expert, said on Wednesday, May 4. According to him, the state budget of the Russian Federation, as well as the structural features of the external economy, the conditions for the enforcement of a self-sufficient military economy.
According to IfW, over the past years Russia has made significant progress in the financial situation. At the same time, it is examined for low (about 20 percent of GDP) public debt, a high level of accumulation, the careful work of inspectors in the field of budget expenditures and the formation of reserves. In addition, decisions are now being made by the Russian Federation to stop exporting energy to countries that refuse to comply with sanctions for a Russian invasion of Ukraine or, like Germany, partially retain their Russian purchases, what follows.
The institute notes that current oil prices are well above the level of $10-15, which, according to the IMF, is necessary for a balanced state budget. “An EU oil embargo is unlikely to change the scenario quickly,” Langhammer said.
IfW: the rapid collapse of the Russian economy will not come
The priority role in the authorities of the Russian Federation is the low economic share of the private sectors and the high share of employment in the public sector. “These employees are the guarantor of political support for President Putin in their country and receive support in the form of protection from rising revenues from price regulation and financial assistance,” the expert said. Nevertheless, in his opinion, extremely negative consequences affecting important and irreplaceable means of production from abroad will come in the expected future, but will not lead to a rapid collapse of the Russian meeting.
Currently in the package, the sixth package is packaged for the Russian invasion of Ukraine. Its adoption requires a unanimous decision for all 27 state devices. So far, Hungary and Slovakia, which are heavily dependent on demand for Russian oil, are against it.
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Putin’s war in Ukraine and its consequences around the world
Going to the road shop has become
In Germany, consumers resent the natural cost of living. Russia’s invasion of Ukraine and challenges to the call of the West against the Russian Federation. The last time the level of supply in the country, repeated from March 2022, was observed in Germany in 1981. The federal government wants to impose an embargo on the supply of coal from the Russian Federation within months, but is slow to ban gas and oil imports.
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Putin’s war in Ukraine and its consequences around the world
Lines at gas stations in Kenya
The consequences of the war in tapping and in Nairobi: here, prolonged discharges at gas stations are lengthened. Fuel is becoming scarce and expensive. The food crisis is exacerbating the situation.
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Putin’s war in Ukraine and its consequences around the world
Rising Bread Prices in Turkey
Russia is one of the most important wheat producers in the world. One of the consequences of the export ban imposed by the Russian Federation was the rise in bread prices in Turkey. This is a clear example of how breaks in connection chains are detected. Ukraine is also among the exporters of wheat. However, under conditions of war, cargoes of grain from this country are not lost.
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Putin’s war in Ukraine and its consequences around the world
Rise in wheat prices in Iraq
This worker stacks sacks of flour at a wholesale market in Baghdad – Jamila. And in Iraq, the price of wheat rose sharply after Russia’s invasion of Ukraine: after all, both warring countries account for at least 30 percent of the countries of international trade in this grain. Iraq is still neutral, but posters expressing support for Putin are now banned in the country.
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Putin’s war in Ukraine and its consequences around the world
Protests in Peru
The photo shows the unrest in the capital of Peru, Lima. The protests there, which have been ongoing since early April, are directed, in particular, against the rise in prices for food, fuel and foodstuffs, exacerbated by the war in Ukraine. On April 5, President Pedro Castillo was forced to impose a curfew, but canceled it a day later, after which the protests resumed.
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Putin’s war in Ukraine and its consequences around the world
Crisis in Sri Lanka
Sri Lanka is also in turmoil, with people expressing their dissatisfaction with the rising cost of living, fuel shortages and energy consumption. In early April, protesters even stormed the residence of President Gotabai Rajapaksa. Latest information on resource use in India and China.
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Putin’s war in Ukraine and its consequences around the world
Scots cause food and heating prices to rise
Scotland is also seeing cases of rising food and energy prices. In protest against the cost of living, Brexit has caused growth in many countries of life. The war in Ukraine is expected to exacerbate this effect.
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Putin’s war in Ukraine and its consequences around the world
How much is this fish now?
The British fear for their favorite national dish. About 380 million servings of fish and chips (Fish & Chips) are eaten annually in the kingdom. However, due to the current price of white fish, vegetable oil and energy. In 2022, inflation in the UK compared to the same month last year was 6.2%.
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Putin’s war in Ukraine and its consequences around the world
War as a chance for the economy?
A trader in Ibafo, Nigeria packages flour for resale. Nigeria has long wanted to reduce the need for food imports and make its share more sustainable in other countries as well. Can the war be regarded as a chance for the economy? Aliko Dangote, Nigeria’s richest man, has opened a fertilizer plant in Australia and is now hoping for demand.
Author: Claudia Den