Background

September 4, 2022 Ukraine and the World – Against russia’s Aggression. Sanctions in Action

9/3/2022
singleNews

US President Joe Biden’s Administration is asking the US Congress to approve the allocation of additional security and economic assistance to Ukraine in the amount of $11.7 billion, as well as $2 billion to help strengthen domestic energy carriers supplies to offset the impact of the war on the global energy market.

The Pentagon has announced the creation of a “tiger team” – a group of government officials who will study the effectiveness of arms sales to other countries to improve competition with China and to replenish the list of friendly countries that have provided military aid to Ukraine. One of the team's tasks is to find ways for the US Department of Defense to optimize supplying US drones, tanks, helicopters and other weapons to allies. The revision of the Concept of selling American weapons began in the summer against the background of tensions in relations between the United States and China, as well as the rf’s full-scale invasion of Ukraine. Also, the members of the “tiger team” should help other countries to draw up letters and contracts more efficiently, removing obstacles during the conclusion of contracts for the supply of weapons.

Former NATO Secretary General Anders Fogh Rasmussen called on the USA not to hesitate to help Ukraine in the amount that would enable it to win and ensure a lasting peace – on the grounds that it is in the interests of the United States itself.

US National Security Council Spokesperson, commenting on the shutdown of the Nord Stream gas pipeline, said that moscow uses energy as a tool to pressure Europe.

Latvia’s President Egils Levits and the country's Minister of Defence Artis Pabriks called on NATO allies to provide Ukraine with modern battle tanks and aircrafts, and also warned against weakening their resolve in countering russia.

All citizens of Ukraine who currently live in Latvia can receive all medical services and medicines at the expense of the Latvian state. To get an appointment with doctors, one needs to make an appointment in advance by phone or at the registry office of a medical institution.

rf

russia’s minister of foreign affairs sergei lavrov, spokesperson for the ministry of foreign affairs of the rf maria zakharova and other members of the russian delegation did not receive visas to travel to New York for the UN General Assembly session and the meeting of world leaders.

Due to the russian crisis, the government is going to significantly reduce measures to support the country's economy. head of the ministry of economy, reshetnikov, said that within the framework of anti-crisis measures, the force of which will be prolonged, 37 points of the plan out of 300 remain. In particular, the program of preferential lending to system-building companies will not be prolonged: to stimulate them, loans were temporarily provided at 10% per annum for the agro-industrial complex and 11% – for industry and trade.

European Commissioner Paolo Gentiloni said that the European Commission will push for the introduction of a price limit for russian oil, agreed within the framework of the G7, throughout the European Union.

Vice-Chancellor of the Ministry of Internal Affairs of Estonia, Veiko Kommusaar, said that the real estate of citizens of the rf in his country can be confiscated if the owners cannot pay their debts for managing it.

Global Blue, the Swiss operator of the VAT refund system for individuals crossing the border tax free, has withdrawn from business in russia.

The Japanese automobile concern Hino Motors, which is a “subsidiary” enterprise of Toyota, has abandoned plans previously agreed with the rf to start production of trucks and buses in russia.

After the division of the Swedish company Electrolux Professional, which manufactures equipment for public catering, stopped its operations in russia, the main Electrolux group, which manufactures and sells household appliances (the share of this brand was consistently up to 15% of the russian market), is leaving the rf. The company has reported that the rf’s military aggression against Ukraine and international sanctions “made it impossible for Electrolux to continue working in the country”.

According to the calculations of a group of Yale University analysts, out of 1,200 large foreign companies that worked in russia before the start of its aggression against Ukraine, more than 1,000 (mostly from the EU and North America) announced the suspension or reduction of business in the rf. At the same time, a study by the consulting company соре.хр showed that 25% of foreign retailers have closed their stores in russia, more than 80% of which are recognized global brands.

Against the background of international sanctions, the most popular holiday destinations for russians in the summer of 2022 were Turkey, Armenia, Tajikistan, Kyrgyzstan and Uzbekistan. The average cost of a tour to Turkey with a charter flight increased by 77–100% compared to last summer, to the UAE – by 28%, to Egypt – by more than 60%.

According to the belarusian center for new ideas, belarusian trade with Western countries decreased by almost 1.5 times compared to the first half of 2021 – from 4.5 billion to less than 3 billion. Trade with China, although it is 752 million, but in comparison with other countries is still not particularly significant (the PRC annually imports $2–3 trillion worth of products and resources from around the world). There were also serious problems in logistics. After losing access to the ports of Ukraine and the Baltic countries, trade with China has to be built exclusively through russia, which puts it in direct dependence on belarusian-russian relations.

In July 2022, the belarusian market for new car sales fell five times compared to the same period of last year (837 cars compared to almost 5,000 last year, according to the belarusian automobile association). Only 12,700 cars were sold in belarus in 7 months of the current year.

belstat has stopped updating data on the state of external public debt and budget execution, which are usually published according to the IMF’s standard for data dissemination. Absence of information is explained by the Ministry of Finance’s not providing them to the statistical committee for reporting. The IMF representative office in belarus does not comment on the refusal to publish part of the data within the framework of the stipulated agreements. Reporting under the IMF's Special Data Dissemination Standard (SDDS) is published by national statistical committees when countries sign up to this reporting standard. This imposes obligations on states to provide data according to the prescribed methods and schedule. belarus joined the IMF’s SDDS in 2004. Currently, state officials are limited to general information about the national debt, while they have classified information about who the country borrows money from, as well as to whom and what amounts it pays for old loans.