Categories: Economy

Sanctions against Russia disrupt global supply chain network

<p>
<strong>Supply chain disruptions have already started denting global trade following the stringent sanctions against Russia. This could delay the post Covid 19 pandemic economic recovery process across the world. The Russian economy, analysts estimate, could decline by 7 per cent after registering 2 per cent GDP growth in 2021.</strong></p>
<p>
As part of the sanctions announced by the US, UK, Germany and their allies the Russian banks have been disconnected from the SWIFT international payment system leading to choking of Moscow’s financial payment mechanism thereby affecting cross border trade.</p>
<p>
Crude oil, refined petroleum, wheat, gold and coal are among Russia’s top exports items. About 40 per cent of Europe’s energy needs are sourced from Russia.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/world-news/does-ukraine-s-railway-network-hold-key-to-russia-s-strategic-war-plan-155133.html">Does Ukraine’s railway network hold key to Russia’s strategic war plan?</a></strong></p>
<p>
In 2020, Russia exported goods worth $335.5 billion across the globe.</p>
<p>
According to <a href="https://gulfnews.com/business/markets/russia—ukraine-war-leaves-global-trade-in-tatters-1.86220357">Gulf News</a>, since Russia’s invasion of Ukraine, hundreds of tankers and bulk carriers have been diverted away from the Black Sea, while dozens more have been stranded at ports and at sea unable to unload their valuable cargoes.</p>
<p>
While the news organization said that only a small handful of Russia’s 2,000 cargo and tanker ships have been sanctioned by Western powers, the freezing of the assets of the country’s biggest banks means the business of importing and exporting from Russia will take a major hit.</p>
<p>
Meanwhile Russia has been strengthening its trade relations with China.</p>
<p>
Last month Moscow signed up a $117.5 billion 30-year natural gas contract with China but Beijing, after its initial support to Russia after the country attacked Ukraine, is now showing some reluctance in providing full support to the Vladimir Putin administration.</p>
<p>
Last week, Beijing based multilateral agency Asian Infrastructure Investment Bank announced suspension of all activities relating to Russia and Belarus.</p>

IN Bureau

Recent Posts

UKPNP Slams Pakistan’s Unconstitutional Presidential Order in PoJK

Jamil Maqsood, the President of the Foreign Affairs Committee of the United Kashmir People's National…

1 hour ago

Meeting of ASEAN-India Trade in Goods Agreement committee concludes in Delhi

The 6th meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee concluded in…

2 hours ago

US adds 29 Chinese firms to Uyghur Forced Labor Prevention Act Entity list

The US Department of Homeland Security (DHS), on behalf of the Forced Labor Enforcement Task…

2 hours ago

Tibetan Parliament-in-Exile calls for UK’s action on China’s Abuses

A delegation from the Tibetan Parliament-in-Exile (TPiE), led by Speaker Khenpo Sonam Tenphel and accompanied…

3 hours ago

Indian Dornier 228 aircraft flypast on the sidelines of India-CARICOM Summit

On the sidelines of the 2nd India-CARICOM Summit, leaders of the member countries witnessed a…

3 hours ago

India spent $14 tn on investments since Independence, more than half of it spent in last 10 yrs: Report

India's economic growth story has witnessed a remarkable surge in investment spending, with over half…

4 hours ago