11 Mar Economic Sanctions of Russia on America : Impact on America as well as on India
Economic Sanctions of Russia on America : Impact on America as well as on India- Today Current Affairs
Context : Kremlin hits back at Western sanctions with export bans recently Russia has also implied some economic sanctions over America as well as European countries .These sanctions will influence the economy of America as well as the economy of entire Europe and India
Today Current Affairs
Introduction :
- By 10 march 2022, the Russian president declared several bans over the export of American goods. There are many goods from America for which Russia is a big market. The Kremlin has banned exports of telecom, medical, auto, agricultural, electrical and tech equipment, as well as some forestry products, until the end of 2022, in retaliation for Western sanctions on Moscow. After these sanctions, the inflation in America would be away from her control. One side, because of the hike in petrol prices and on another side with the sanctions on the export from America will increase inflation in America which resulted as the huge economical loss in America
- Russia banned more than 200 items for export of America which also covered railway cars, containers and turbines. It will suspend exports of wheat, muslin, rye, barley and corn to the Eurasian Economic Union (EEU) until August 31.
- Russia had yesterday said that it had ensured the availability of enough food under his stock . Definitely Russia is the largest exporter of the grains of Europe. European countries have to purchase the grain at high prices either from India or from other countries.
- Because of the Russia Ukraine crisis the price of Crude oil is continuously increasing which would inversely impact on the economy of India . However, Indians can purchase crude oil from Russia at a lower price because these days Russian currency has devalued .
- Russia is one of the largest gas producers of Europe . The European market fulfills at least 40 % of its gas requirement from Russia . However, Russia will continue the export of oil and Gas from Ukraine because of the terms of the contracts which Ukraine and Russia had done in the past . In this way, Europe has to face the crises of gas and oil in future . Definitely sanctions imposed against Russia would rebound against the West.
Impact on India : The Hindu Analysis
India could protect itself from such crises of the price hike of crude oil. First India has sufficient oil reserve which could be used in near future . If this crisis continues, India could import crude oil and gas from Russia at less prices . India could export its grain to European countries , provide India could neutralize itself from the pressure of America and European countries
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Conclusion
The reaction of the economic sanctions was an obvious result of the American sanctions over Russia . Since Russia is the largest country of the world and the largest producer of the grains and the oil and gas .So only Russia would not be suffering , Entire world including India will have to face the problem of an economic crisis . India and the developing countries have not been overcome from the evil effects of the corona pandemic and once India has to face another crises erupted because of the Ukraine Russia crisis
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Source : The Hindu
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