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Sanctions imposed on Russia: a big change to daily life

Introduction

This year, on the 24th of February, the world witnessed the Russian invasion of Ukraine. After rising tensions, the Russian Government decided to start the ‘special military operation’ which has since claimed thousands of lives. As a result of this conflict, many countries were quick to impose strict economic sanctions on Russia, which have already had their effect on the Russian economy. But what are the consequences of such sanctions on daily life in Russia?

What sanctions have been imposed?

Many countries, among them the US, UK, New Zealand, and the EU member countries, immediately imposed different sanctions to try and stop Russia from further military actions. The more or less immediate reaction of the US government was to ban the export of certain technologies to Russia, which would “make it harder… to modernize [Russia’s] oil refineries.” (Al Jazeera) However, one of the most significant actions the US took was banning Russian oil, which is one of Russia’s biggest exports. Among many others, the EU froze the European assets of Russian President Vladimir Putin and his foreign minister Sergey Lavrov. Russia’s ally country, Belarus, also suffered some consequences as the EU banned imports of products from tobacco, mineral fuels, cement, steel, iron, etc. Many different companies such as IKEA, Spotify, and Apple have also decided to leave Russia. Among them are also Visa and Mastercard who have suspended operations in Russia. This has already had its effects on the Russian economy because people are unable to complete transactions.

Impacts on daily life in Russia

When the war started and the sanctions were imposed, the Russian rouble “plummeted…, leading many retailers to raise their prices.” People living in Moscow believe that while food may not disappear, prices will probably rise exponentially. “On 20 February I ordered groceries for 5,500 roubles [about $57; £44] and now the same basket costs 8,000,” says an EU citizen living in Moscow. While certain retailers are simply limiting the amount of products people can buy, others have “agreed to limit price rises on some staples to 5%”. Moreover, there has been a more than 10% increase in the prices of smartphones and televisions, but many of them quickly sold out before the companies left the Russian market.

International impacts

Perhaps one of the most significant sanctions was one imposed by the US when it banned imports of oil and gas from Russia. The UK has also followed in the US’s steps and has started to “phase out oil imports”. The European Union said it would “move to end its reliance on Russian gas”. 

Why is this important? Along with Iran and Qatar, Russia is home to the largest reserves of natural gas. Half of the world’s natural gas reserves in 2020 were accounted for by the three aforementioned countries. In 2021, 45% of the EU’s gas imports and 40% of its entire gas consumption came from Russia. Despite the EU and other countries announcing plans for ending their reliance on Russian oil and gas, it seems as though these sanctions will have certain long-lasting consequences. As soon as the US stopped such imports from Russia, oil and gas prices started to rise and the same is expected in other countries that have imposed similar bans.

Conclusion

Sanctions imposed on Russia have so far affected its citizens much more than the people with the power to stop the war in Ukraine. However, their long-lasting effects on the conflict remain to be seen. It is true though, that bans on Russian oil and gas from some of the major countries in the world will have great consequences for the world’s economy as people are realizing their economic dependence on Russia and governments who support Ukraine will try to distance themselves from such policies and trade in the future. Daily life in Russia, although already hard, is expected to get harder, as products disappear and soon enough, jobs might also vanish. In this case, Russia will have a very hard time getting its economy back on track and the lives of its citizens back to normal.

Sources

Al Jazeera Staff. “Infographic: How Much of Your Country’s Gas Comes from Russia?” Www.aljazeera.com, 17 Mar. 2022, http://www.aljazeera.com/news/2022/3/17/infographic-how-much-of-your-countrys-gas-comes-from-russia-interactive. Accessed 19 Mar. 2022.

—. “List of Sanctions against Russia after Ukraine’s Invasion.” Www.aljazeera.com, 3 Mar. 2022, http://www.aljazeera.com/news/2022/2/25/list-of-sanctions-on-russia-after-invasion.

—. “US Bans Russian Oil: What Is next for Oil and Gas Prices?” Aljazeera.com, Al Jazeera, 9 Mar. 2022, http://www.aljazeera.com/news/2022/3/9/us-bans-russian-oil-what-does-this-mean-for-oil-prices.

Badshah, Nadeem. “Visa and Mastercard Will Both Suspend Operations in Russia.” The Guardian, 5 Mar. 2022, http://www.theguardian.com/world/2022/mar/05/visa-and-mastercard-will-both-suspend-operations-in-russia. Accessed 19 Mar. 2022.

Hanbury, Mary, et al. “Here Are the Major US and European Companies Pulling out of Russia Following the Invasion of Ukraine.” Business Insider, 10 Mar. 2022, http://www.businessinsider.com/list-all-the-companies-pulling-out-of-russia-ukraine-war-2022-3#28-tiktok-28. Accessed 19 Mar. 2022.

Shamina, Olga, and Jessy Kaner. “Russia Sanctions: How the Measures Have Changed Daily Life.” BBC News, 13 Mar. 2022, http://www.bbc.com/news/world-europe-60647543.

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Weekly Summaries

13th – 19th of December

Drastic Changes for the E.U.

Last week, the E.U. proposed some very drastic changes, which involve taking away the unfettered movement of people between E.U. countries. This is a hallmark sign of the E.U., but it could become a distant memory if both all national government and the E.U. Parliament approve of the change. If this would be the case, member countries could re-introduce border checks as frequently as they wish. The European Commission justified the proposal by stating that it would “help member countries better respond to troubles stemming from migration and the pandemic,” according to the New York Times.

Other News

  • Storms across 6 U.S. states killed at least 90 people. One of the tornadoes will become the “longest tornado in U.S.,” according to Kentucky’s governor.
  • The first official visit by an Israeli leader to the UAE took place on Tuesday the 14th of December. Israel’s prime minister Naftali Bennett met with the crown prince of the United Arab Emirates, Mohammed bin Zayed.
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News

The Belarus-Poland Border Crisis and its consequences

Introduction

The Belarus-Polish border crisis has become the biggest challenge to the EU’s border in years.  The standoff between migrants and the Polish border guards seems to have been fueled by Belarus’ tensions with the EU. Although some migrants have managed to cross into Poland from Belarus over the past couple of weeks, Poland has recently strengthened its border and closed crossings in response to the crisis. For the Poles and EU member states, the aforementioned crisis is seen as an artificial one created by Belarus’ authoritarian president, Alexander Lukashenko, to get an advantage in the political game between the two.

Origins of the tensions

Since the beginning of November, there has been an influx of migrants from the Middle East [Iraq, Syria, Afghanistan] as well as other countries at the Belarus-Polish border. These migrants have been camped in the Białowieża Forest in freezing temperatures. According to a nonresident fellow at the Atlantic Council’s Eurasia Center, Hanna Liubakova, “it’s a terrible situation” for those caught in the camps without food or proper clothing. Several migrants trapped at the border have died due to the freezing conditions.

Lukashenko’s regime has denied the charge that his administration has been actively encouraging migrants to come to Minsk, before pushing them to the border, encouraging them to clash with Polish authorities. The migrants have come to the border with the hopes that they will cross into Poland since Belarus is not a member of the EU. Poland being a member represents a doorway into the EU and the promise of a better life for these migrants. (BBC)

Although the number of migrants at the border is roughly 4.000, it has become the EU’s biggest border challenge since 2015, when hundreds of thousands of migrants crossed from Turkey into Europe. More than a million migrants were eventually allowed into the union as a result. 

In the past week, Polish guards used water cannons and tear gas against stone-throwing migrants at the Kuznica-Bruzgi border crossing. Other scenes similar to this one have appeared on the border, supporting Lukashenko’s anti-EU agenda following the union’s sanctions imposed on his regime after the August 2020 elections. (New York Times)

Lukashenko’s hopes and aims

For more than 25 years, Lukashenko has remained the leader of Belarus, returning for a sixth-term as president in a vote which is widely considered fraudulent.

In May, Belarus forced an international flight to land in the capital of Belarus, Minsk, in order to apprehend Roman Prostasevich, a journalist, former editor and founder of an opposition blog and social media channel. The outrageous act prompted the EU to impose retaliatory sanctions. Shortly after, Alexander Lukashenko hinted at the ability for Belarus to quickly stir up a migrant crisis against the neighboring EU member states — Poland, Lithuania, and Latvia.

“Lukashenko wants to show his revenge for sanctions,” says Liubakova of the Eurasia Center. But the leader also wants to switch the discussion from political prisoners, torture and repression under his rule to something external, she says: “he wants to refocus the situation and force the West to see the crisis at the border and ignore the human rights situation in Belarus.” The aim of this is to try to begin discussions and lift the sanctions. Lukashenko understands the leverage he can acquire through force, and believes that through this he can forcefully restore bilateral dialogue. (Inews)

What can Poland and the EU do?

The EU has planned additional sanctions against Belarus as a response to the crisis. Considering the fact that the entire causal factor of this manufactured crisis are the sanctions, the EU should be wary of what it does next.

Outgoing German Chancellor Angela Merkel managed to have a discussion with Lukashenko on Monday, the 15th of November. This rare phone call between the two leaders allowed Lukashenko to secure dialogue with the EU. Germany would most likely receive the highest influx of new immigrants if the Polish border opened up, therefore, it was prudent for Merkel to negotiate. Their talks seem to have been successful since new reports have emerged, stating that Belarus is putting migrants on buses to be transported out of the area. Additionally, in an effort to further de-escalate the situation, Merkel spoke with President Vladimir Putin of Russia, asking him to use his leverage on Lukashenko. So, Lukashenko has succeeded in re-opening dialogue, but it’s unclear where that might lead, given continued international distaste for his authoritarian tactics. (New York Times)

However, now there is the question of where the migrants will go. According to international law, the European Union and Poland are obligated to hear the case of asylum seekers. As Jan Egeland of the Norwegian Refugee Council says, “both sides of this abject power play should take responsibility for these migrants, who are vulnerable people. Belarus and Russia have to stop using them as pawns on some kind of a chessboard.” (Inews)

Sources

  1. https://www.bbc.com/news/world-europe-59289998
  2. https://inews.co.uk/news/world/belarus-what-happening-poland-border-crisis-why-migrants-enter-eu-explained-1307498
  3. https://www.nytimes.com/2021/11/17/briefing/poland-belarus-border-crisis.html
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Weekly Summaries

15th of November – 22nd of November

Tensions at the Poland-Belarus border

Thousands of migrants were trapped at the border between Belarus and Poland for weeks. Poland, a member of the European Union, refused to open the border. Now, an increasing number of migrants have decided to seek asylum in Belarus instead. This could cause many problems for Belarus, a country that has few jobs and other opportunities. Towards the end of the week, Belarusian authorities then cleared the camps at the border and moved the migrants to a warehouse instead. The question of what will happen to the migrants now remains unanswered.

Other News

  • Sudan’s prime minister, Abdalla Hamdok, was reinstated on Sunday after being in house arrest for four weeks
  • A new Portuguese law is considered revolutionary in its efforts to regulate remote work conditions. The law effectively prevents employers from contacting their employees outside of working hours and from monitoring their work.
  • President Biden of the U.S. and President Xi of China met virtually in a three-hour long summit to keep “communication lines open”
  • Germany “suspended approval of the Nord Stream 2 pipeline,” according to the New York Times. The move cause gas prices in Europe to rapidly increase
  • An explosion in Kampala, the capital city of Uganda, killed at least three civilians. The explosion was later described as an “extremist attack” with three suicide bombers also dying. 
  • A self-portrait of Frida Kahlo sold for $34.9 million last week, setting a new record for the most expensive artwork by a Latin American artist at the auction Sotheby’s
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Weekly Summaries

8th of November – 14th of November

Tensions at the Poland-Belarus Border

Poland has stationed thousands of troops along its border with Belarus where migrants from Middle Eastern countries have set up camp, hoping to enter the European Union. This situation can be seen as a confrontation between Belarus and the E.U., of which Poland is a member. Politicians from E.U. member countries have accused President Lukashenko, Belarus’ leader, of “intentionally trying to create a new migrant crisis in Europe,” according to the New York Times. The E.U. imposed sanctions on Belarus after President Lukashenko’s victory in the elections of August 2020.

Other News

  • After Brexit, British companies have found themselves caught in a tangled web of restrictions and financial obstacles if they want to do business in E.U. countries. The country Estonia saw an opportunity and is now welcoming British companies who want to escape such troubles.
  • The top general of Sudan’s army appointed himself as the “head of a new ruling body” after last month’s coup, according to the New York Times
  • Japan’s economy contracted again in the third quarter of the year
Categories
News

The G20 Summit in Rome, Italy

Who attended?

These past few days, the political leaders of the G20 member countries met in Rome to discuss a handful of issues. Some of the politicians who were present are: 

  • Alberto Fernandez (Argentina)
  • Scott Morrison (Australia)
  • Jair Bolsonaro (Brazil)
  • Justin Trudeau (Canada)
  • Xi Jinping (China)
  • Emmanuel Macron (France)
  • Angela Merkel (Germany)
  • Mario Draghi (Italy)
  • Narendra Modi (India)
  • Joko Widodo (Indonesia)
  • Manuel Lopez Obrador (Mexico)
  • Moon Jae-in (South Korea)
  • Vladimir Putin (Russia)
  • Salman bin Abdulaziz Al Saud (Saudi Arabia)
  • Cyril Ramaphosa (South Africa)
  • Recep Tayyip Erdogan (Turkey)
  • Boris Johnson (United Kingdom)
  • Joe Biden (United States)

Joining these political leaders was the President of the European Commission of the European Union, Ursula von der Leyen, and President of the Council of the European Union, Charles Michel. Antonio Guterres, general director of OMS, specifically discussed financial issues relating to the health of the world population.

What was discussed?

So, first and foremost I want to say my thoughts on the possible solutions that will be discussed in the hopes of resolving some of the world’s current Economics problems.

  1. The European Union will invest in the eco-transaction for social enterprises, which are present in nations like Germany and Netherlands, but not in Turkey or in the United States at the moment. Mario Draghi was noted as saying that the Turkish president did not consider the political circular economy. Therefore, there will be no equality in the sense of financial economics in the future, and as a result there will be more discrepancies in terms of environmental sensibility. 
  2. The markets will be more open to Artificial Intelligence. This is especially important as AI is now considered fundamental for new inventions and innovations. 
  3. The United States will invest more on the prototype of financial democracy. In general, it has been noticed that Biden’s government is more concerned with solving population problems than Trump’s government. 
  4. China will be the first world power nation. Compared with all other international markets, China is one of the best markets for social capital that Chinese companies can invest with and also for AI (Artificial Intelligence).

Conclusion

In general, I believe there will be considerable investments in innovation, but I also think there will be areas that will see more progress than others.

I believe the central areas will be capital growth, new health solutions and eco transactions, with a greater focus on the rights of employees. Meanwhile , I think that the semi-peripheral areas will be capital growth, new health solutions but also more consideration of people’s rights on goods and services and on working issues of industries. In my opinion, the periferica areas will be debts and stagflation. It is also possible that there will be problems about having credits as paying back debts may become difficult to do. However, also inflation and financial stagnation are likely to lead to many problems, meaning that no investments will be made into sustainable finance. 

Let’s hope there will be a graduating consideration of nations that are in critical situations, like Perù, Mexico, Spain, and many African countries.

Sources

  1. https://www.consilium.europa.eu/en/
  2. di Taranto, Giuseppe. “The History of Economics.” (2012)
Categories
Weekly Summaries

11th of October – 17th of October

Nobel Prize in Economics

The 2021 Nobel Memorial Prize in Economic Sciences was awarded to three U.S.-based economists who work with real-life experiments. David Card from the University of California, Berkeley, specializes in studying “unintended experiments to examine economic questions.” An example of such an experiment is whether raising the minimum wage causes people to lose their jobs. Joshua D. Angrist from the Massachusetts Institute of Technology and Guido W. Imbens from Stanford University won the prize for their joint work on developing research tools that economists utilize to test major theories using real-life situations. An example of this could be whether additional education has an impact on the amount a person earns. Click here to watch a video of the three winners

Other News

  • 32 countries joined the U.S. in a deal aiming to reduce methane emissions by 30% by 2030 that was developed by the E.U.
  • A trial in Burkina Faso hopes to finally establish who killed Thomas Sankara, the former president, more than 30 years after his death
  • In a pledge, the E.U. decided to give 1 billion Euros (around 1.15 billion US$) in aid to Taliban-ruled Afghanistan and neighboring countries
  • A man killed 5 people using a bow and arrow in Kongsberg, which is just outside of Oslo, Norway. The police announced that the suspect is now undergoing psychiatric evaluation
Categories
Weekly Summaries

26th of July – 1st of August

Chaos in Tunisia

The President of Tunisia, Kais Saeid, tried to seize power in what some call a coup. He announced that he would fire the prime minister and has already suspended Parliament. However, so far it seems that his success is very limited, although many Tunisians expressed their support. Tunisia has been a democracy since the Arab Spring revolutions.

Other News

  • A landslide in India killed 9 people, most of them tourists. Furthermore, monsoons on the western coast have also killed more than 164 people so far.
  • France has been witnessing many protests against the so-called “Covid Pass” policy
  • North Korea and South Korea have — after 14 months of silence — reopened diplomatic and military hotlines between the two countries
  • Flash floods in Afghanistan have killed at least 80 people, but the search for survivors still continues
  • President Biden announced that EU citizens will continue to be barred from entering the U.S., citing fears that the Delta variant would be spread, despite the fact that U.S. citizens are allowed to enter EU countries, as long as they are fully vaccinated
  • Forest fires in Turkey and wildfires in Greece have had devastating consequences for the people living in the surrounding areas

Are you up to date with the Olympics? Check here for the newest updates

Categories
Weekly Summaries

24th of May – 30th of May

A possible case of plane hijacking by Belarus

Last weekend, a Ryanair plane on the way from Athens to Vilnius was forced to land in Minsk (Belarus’ capital) by a fighter jet, according to the New York Times. On board was Roman Protasevich, a leading opposition journalist who currently lives in exile in Lithuania. Upon landing, he was immediately arrested on what the New York Times calls “charges of inciting hatred and mass disorder.” He will face imprisonment of more than 12 years if he is found guilty. The international response has been critical of Belarus, with Greece and Lithuania both describing the scenario “hijacking by the Belarusian government” and the E.U. “urging” airlines to avoid flying over Belarus’ airspace. Russia, meanwhile, has stood by Lukashenko’s side.

Other News

  • The former leader of Myanmar, Daw Aung San Suu Kyi, has been seen in public at the court for the first time since the military coup that detained her, ending her term as leader of Myanmar. If she is found guilty of the many charges she faces, she may be imprisoned for life.
  • The one-year anniversary of George Floyd’s killing was last Wednesday.
  • A cable car crash in Italy killed 14 people. Police have now arrested three people, who may be related to the crash.
  • Just as the last of the remaining U.S. troops in Afghanistan are withdrawing, 25 rural Afghan government outposts as well as bases in four provinces have surrendered to the Taliban, according to the New York Times.
  • Just days after Mount Nyiragongo erupted deadly in the Democratic Republic of Congo, another potential eruption forced the evacuation of Goma.
Categories
Weekly Summaries

22nd of March – 28th of March

Container Ship Gets Stuck in the Suez Canal

By now you may have seen the pictures that are spreading all over the Internet. The ship, which is about as long as the Empire State Building in New York City is high, has been stuck in the Suez Canal since Tuesday evening. It seems as if exceptionally strong winds forced the ship aground one of the Suez Canal’s banks. Because of its tremendous length, this meant that the container ship is now effectively blocking the passageway of one of the most important canals in the world, connecting the Red Sea to the Mediterranean. Over 100 ships are now stuck at either end of the canal, carrying oil and different goods destined for ports around the world. Delays in the transportation of materials from Asia to Europe are being expected. Unfortunately, it does not seem like the container ship will be dislodged any time soon—some suspect that it may take weeks or maybe even months.

Elections in Israel

This past Tuesday, Israel saw the country’s fourth elections in two years. Netanyahu, who is the current Prime Minister, is currently facing corruption charges, but hopes that his policies dealing with the coronavirus outbreak will help him win. Israel has put a vaccination program in place that is far superior to other countries and has been able to successfully vaccinate a large number of people. Recent counts suggest, however, that Netanyahu will have to form a coalition as he only received 52 of the required 61 seats to form a majority. Several parties which jointly hold 57 seats have already announced that they will form a block against Netanyahu, while some parties collectively holding 11 seats have not yet published their decision.*

Other News

  • Indian farmers have camped outside New Delhi for four months now, protesting against the subsidy system that is considered to be “broken” by many
  • An attack by gunmen left 137 people dead in Niger

*according to the news distributor Haaretz