Russia Responds To Western Sanctions By Imposing Export Bans
Raw materials make up the majority of western nations’ Russian imports. Not only oil and gas, but also metals such as nickel and aluminium, along with potash and other phosphates that are widely used in fertilizers, are all available from Russia.
These goods have seen their prices rise sharply due to conflict. There are fears that supplies might be disrupted. If they stay high, it will lead to economic pain in Europe.
However, a ban on Russian locomotives and railway cars is unlikely to cause any hardship. Restrictions on the sale or purchase of agricultural machinery will not be enforced, either. These products can be exported, but mostly to countries such as Belarus and Kazakhstan.
Stellantis, the owner of Vauxhall Peugeot Citroen and Peugeot, is concerned about vehicles being added to the list. It was planning to export vans from Russia to Europe and other parts.
However, overall the impact of counter-sanctions seems more symbolic than substantial. However, if Russia introduces restrictions on raw material exports, they could have a more dramatic impact.
A retaliatory proposal could be made to prevent foreign ships entering Russian ports, following the ban by Britain on Russian-operated vessels last week.
On Thursday, President Vladimir Putin stated that sanctions by the West would have “negative consequences” on the world’s food market because Russia is a major producer and exporter of agricultural fertilisers.
He stated, “It is obvious that at such times people’s demand to certain groups of goods always rises, but we have every doubt that we will solve these problems while working calmly.”
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