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Russia Ukraine Crisis Latest Updates, By Forex Forum.
Despite an economic counteroffensive by the U.S. and European allies that has cut off Russia's access to billions of dollars of its own money, President Vladimir V. Putin reminded the world this past week that he has economic weapons of his own that he could use to inflict some pain or fend off attacks.
Through a series of aggressive measures taken by the Russian government and its central bank, the ruble, which had lost nearly half of its value, clawed its way back to near where it was before the invasion.
And then there was the threat to stop the flow of gas from Russia to Europe — which was set off by Mr. Putin's demand that 48 "unfriendly countries" violate their own sanctions and pay for natural gas in rubles. It sent leaders in the capitals of Germany, Italy and other allied nations scrambling and showcased how much they need Russian energy to power their economies.
Moreover, It did not take long for Russian businessman Kirill Kukkoyev to feel like he had been taken hostage by the events unfolding in neighboring Ukraine. That moment came eight days after Russia's invasion when Swedish furniture giant Ikea announced it would halt trading in Russia the next day.
Kukkoyev had built an entire business renovating high-end end apartments in St. Petersburg with Ikea fittings. He spent that final day sweating and trying to get in all his orders, hitting the payment button for the last time at two minutes to midnight, he recalled.
Then he applied to register the trademark Idea, copying Ikea's trademark logo.
Kukkoyev's struggles are one man's woes in a sea of troubles as Russia faces not just international sanctions but the impact of Western businesses shunning the country. Thousands of small and medium businesses - including restaurants, bars, beauty salons, consultancies, transportation, logistics companies and others - face similar problems.
Source: sandiegouniontribune.com/news
On the other hand, The European Union's economics chief says Russia's war with Ukraine will trigger a growth slowdown this year, warning the bloc's existing growth forecast of 4% is now no longer viable.
European commissioner for economics and taxation, Paolo Gentiloni, said Saturday that the Ukraine crisis will usher in a period of lower growth for the 19 countries sharing the euro.
The bloc's projection of 4% growth in 2022, issued shortly before Russia's invasion of Ukraine on Feb. 24, will need to be revised downward, he said.
However, in an attempt to take the sting out of the downbeat assessment, Gentiloni said there was no prospect of a recession.
"The good thing is that we entered this crisis five weeks ago [on] a good footing, and we were estimating for this year 4% growth," Gentiloni told CNBC's Steve Sedgwick at the Ambrosetti Forum in Cernobbio, Italy.
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