#westernsanctions

Western sanctions and export controls were designed to weaken America’s adversaries, using the power of the dollar to coerce governments into compliance without resorting to military action. However, these measures have unintentionally created a global shadow economy that unites the principal enemies of democracy, with China at the helm.

The extensive financial and trade restrictions on countries like Russia, Iran, Venezuela, North Korea, China, and other authoritarian regimes have strained their economies by limiting access to Western goods and markets. Yet, according to Western officials and customs data, Beijing has increasingly thwarted these U.S.-led efforts by strengthening trade connections. This coalition of sanctioned nations now collectively possesses the economic scale to resist Washington’s financial tactics, engaging in trade of goods ranging from drones and missiles to gold and oil.

The sharp decline in the value of the ruble is another costly and painful consequence for Russia of its futile invasion of Ukraine. 🇺🇦💙💛🇺🇦

#Repost @kyivindependent_official with @use.repost . . . Russia's Central Bank hiked its key interest rate by 350 basis points to 12% on Aug. 15 in an attempt to halt the sharp decline of the ruble.

The decision came after an emergency meeting called when the ruble briefly broke through 100 to the U.S. dollar on Aug. 14 for the first time since March 2022.

The currency exchange rate has since then slightly dropped below the 100 threshold only to steadily rise to 99.08 by 4:02 p.m. Moscow time. Bloomberg commented that the move failed to prop the currency up as it remains among the three worst performers in developing economies this year.

Despite a summer bump in oil revenues, the Russian economy continues to be battered by Western sanctions and the costs of waging war in Ukraine. More countries have divested from Russian oil and gas, slashing Russia's export income to half its prewar levels.

Moreover, Russia has doubled its 2023 military spending to over $100 billion, or a third of the state budget.

Maxim Oreshkin, economic adviser to Russian dictator Vladimir Putin, blamed the ruble's fall on Moscow's central bank.

Photo: Getty Images