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From Russia With Love
The global economy has one more disruption to deal with. Russia’s decision to deploy troops to two breakaway Ukrainian provinces, retaliatory sanctions by the West and the possibility of heightened aggression ratchet up the risks to a world already reeling from snarled supply chains and some of the highest inflation in years—including soaring energy prices spurred still higher by the tensions. President Vladimir Putin late Monday ordered soldiers into two separatist regions of Ukraine after recognizing their independence. The U.S., along with its European and other allies on Tuesday responded with a broad range of sanctions, Paul Hannon reports.
The price of oil surged, with the global benchmark closing in briefly on $100 a barrel, though it retreated somewhat by early European afternoon trading. Other big Russian and Ukrainian exports—like natural gas, wheat, aluminum and nickel—also rose. Big businesses with operations in Russia, or dependent on raw materials from the country, have said they are bracing for disruptions.
Germany said it put on hold indefinitely plans to certify the Nord Stream 2 pipeline, which had been set to boost Russian gas volumes to Germany, in retaliation for the military move by Russia. Natural gas prices in Europe rose.
President Biden said his administration is taking steps to limit the impact of sanctions on the U.S. economy, although he acknowledged some effects were likely.
How much could sanctions hurt Russia’s economy? Moscow has taken steps to buffer itself against the economic blow.
