Vladimir Putin Says the West’s Attempt to ‘Crush the Russian Economy’ Hasn’t Succeeded
The Russian ruble hit a seven-year high against the US dollar last week and although analysts played down the rise, one economist said people shouldn’t “ignore the exchange rate”. US economists are puzzled by the ruble’s performance in the market and Russian officials have reportedly said that a strong ruble “makes Russian exports more expensive”. Additionally, US President Joe Biden continues to blame Vladimir Putin for high gas prices.
Vladimir Putin Says Western Sanctions ‘Clearly Didn’t Work’
Against the US dollar, the Russian ruble is performing at the highest level since May 2015 and it has been said by a number of people that Western sanctions have failed. At the annual St. Petersburg International Economic Forum, Russian President Vladimir Putin said attempts to destroy the Russian economy did not succeed. “The idea was clear: violently crush the Russian economy,” Putin said. ” They did not succeed. Obviously, that didn’t happen. Traditionally, when a country is widely sanctioned by a majority of countries, capital leaves the region and the overall value of the currency against other fiat currencies would decrease.
However, Russia is the second oil exporter and controls the upper position as world’s largest gas exporter as well. America and the European Union (EU) are trying hard to sanction Russia, but the EU is forced to buy gas and oil from the country in not-so-obvious ways. fortune india complaints that India ostensibly buys oil from the Russian Federation and resells it to the EU for profit. The New York Post details that analysts believe the strong performance of the ruble is due to Kremlin capital controls and the fact that oil and gas prices have soared around the world. Besides India, China and South Korea buy oil from Russia.
A study published by Bloomberg Economics estimates that Putin could amass about $321 billion in profits from energy exports alone. Tatiana Orlova, Emerging Markets Economist at Oxford Economics Told CBS, however, that Russia’s import markets are collapsing at the seams. “Besides skyrocketing export revenue, we have a collapse in Russian imports due to Western sanctions,” Orlova noted in an interview with CBS Money Watch. Max Hess, a fellow at the Foreign Policy Research Institute, told CNBC that Russia is still making record profits. Hess said:
This exchange rate that you see for the ruble exists because Russia has record current account surpluses in foreign currency. Although Russia may be selling a little less to the West right now as the West prepares to cut [reliance on Russia], they still sell a ton at record oil and gas prices. This therefore leads to a large current account surplus.
Service providers refuse to update ATMs in Russia, Biden says Americans will have to pay high gas prices ‘as long as it takes’ to stop Putin’s invasion of Ukraine
Meanwhile, the United States and various Western corporations are doing everything they can to stifle the Russian economy. Just recently, the country’s central bank introduced the new 100-ruble banknote, but automatic teller machines (ATMs) are to have problems with the new invoice. Western sanctions caused ATM companies like NCR and Diebold Nixdorf to leave Russia. Apparently ATM service providers refuse to update ATMs and machines reject new tickets. According to an unnamed payment industry source, Russian ATMs are not a priority. “Given the geopolitical situation, it is difficult to imagine that development for the Russian market will be a priority,” explained the source familiar with the matter.
On June 30, at a press conference at the NATO summit, US President Joe Biden was asked how long American drivers will have to pay the high price of gasoline at the pump. Biden said it will take “as long as it takes” to stop Putin’s invasion of Ukraine. “As long as it takes, Russia cannot, in fact, defeat Ukraine and go beyond Ukraine,” Biden said. Told the journalist. A report by Fortune explains that American citizens “do not seem to agree” with Biden’s decisions. The report cites the latest Associated Press-NORC Center for Public Affairs Research Poll which shows a lack of confidence in Biden’s leadership.
In terms of handling the US economy, 70% of Americans, including 43% of Democrats, disagree with Biden’s handling. 60% of Americans don’t approve of Biden’s leadership, 80% of American citizens think America’s ‘economic conditions’ [are] poor,” and 67 percent of the 80 percent identified as Democrats. Biden and his administration, however, wholeheartedly believe that Putin is responsible for rising gas prices around the world. “We could have turned a blind eye to Putin’s barbaric war on Ukraine and gas prices wouldn’t have shot up the way it did, but America rose to the occasion,” Biden said. . said June 27.
What do you think of Russian ruble strength and Biden saying Americans have to put up with high gas prices because of Putin’s war? Let us know what you think about this topic in the comments section below.
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