FIVE FALLOUTS OF WESTERN SANCTIONS ON RUSSIA

  • March 2, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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FIVE FALLOUTS OF WESTERN SANCTIONS ON RUSSIA

TOPIC: IR

Context-The US announces new measures against Russia prohibiting Americans from engaging in transactions with the Central Bank of Russia and National wealth Fund of Russian Federation.

Concept-

Impact on Key Areas:

  1. Currency: The Russian Ruble crash to 111 to the Us dollar from 83 on Friday.
  2. Fears of Bank Runs: The Central bank had increased the money supply to ATMs after demand for cash rose to its highest level since March 2020.
  3. Capital Controls: affecting the Equity and Bond market.
  4. Shortage of goods: Due to dependence on west for many consumer goods.
  5. Surge in Oil Prices: Brent crude rose to $105 due to fresh sanctions on Russia.
FIVE FALLOUTS OF WESTERN SANCTIONS ON RUSSIA IR