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:
- Currency: The Russian Ruble crash to 111 to the Us dollar from 83 on Friday.
- 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.
- Capital Controls: affecting the Equity and Bond market.
- Shortage of goods: Due to dependence on west for many consumer goods.
- Surge in Oil Prices: Brent crude rose to $105 due to fresh sanctions on Russia.