While Putin is trying on the Russian emperors’ crown, sanctions are gradually dragging Russia down to the bottom

While Putin is trying on the Russian emperors’ crown and mantle, talking about “the gathering of the lands”, the imposed sanctions are gradually dragging his empire down to the bottom.

While Putin is trying on the Russian emperors’ crown and mantle, talking about “the gathering of the lands”, the imposed sanctions are gradually dragging his empire down to the bottom.

The main thing here is not to lose pace and persuade partners to continue and expand the pressure. And soon, the world will be calmer and safer when the Moscow predator is left licking his wounds.

1. Rosneft refused to sell two batches of Urals to two national Indian oil refineries due to a lack of oil. Indian refiners Indian Oil Corp., Bharat Petroleum Corp, and Hindustan Petroleum started negotiations with the largest oil producer in Russia. They were expected to sign 6-months contracts in addition to volumes already supplied by Russia. But only the IOC managed to conclude an agreement with Rosneft for 6 million barrels with an option for an additional 3 million. Reuters sources claim that the Russian company simply did not have any raw materials. After the loss of the European market and the departure of western oil companies, Russia faced a sharp drop in output – by 830 thousand barrels per day until mid-May.

2. Timber production in Russia may stop in the second half of the year due to problems with logistics and the search for new buyers instead of European ones. Until July 10, Russia can supply wood to Europe. After that, the market will be closed according to the 5th package of EU sanctions.

However, there are already difficulties with transportation across the closed borders of European countries and the departure of the largest sea carriers from the Russian market. As a result, some Russian companies began to store their products. Amid the falling prices in the domestic market, companies began to reduce logging, especially hardwood and birch. The latter is used to produce plywood that was purchased in large quantities by the EU, Japan, and South Korea. Due to sanctions, appreciation of transportation, and the strengthening of the ruble, the production of plywood has become unprofitable.

By the fall, some timber companies will record losses and stop production.

3. In addition to oil and forests, problems arise with another traditional item of Russian exports – gold. The Russian gold mining company Petropavlovsk, which has faced the problem of selling products due to sanctions, is considering selling the stake in manufacturing enterprises “as soon as possible.”

This is due to the inability to service the loan previously provided to the company by Gazprombank.

4. Russia is trying to force citizens to stop using the currency. Tinkoff Bank has announced the entry of a fee for servicing foreign currency accounts. Starting on June 23, it will withdraw 12% per year with a balance of more than $ 1,000.

The bank said it was a forced move and warned that a fee would be set for keeping currency in brokerage accounts. The change will affect card accounts in US dollars, euros, pounds sterling, and Swiss francs. The fee is to be charged daily.

Raiffeisenbank reported the plans to raise fees for SWIFT currency transfers up to 2-3%. Three days ago, the fee for SWIFT transfers was raised up to 1% by Tinkoff .

Russian banks have stopped cashing customer accounts. A maximum of 50,000 rubles can be withdrawn per month.

5. Russia is expected to lose 15 years of economic growth due to the war. According to the Institute of International Finance (IIF) report, the invasion of Ukraine will lead to the fact that by the end of 2023, the Russian economy will lose what it has gained over the past 15 years. The IIF estimated a 15% drop in Russian GDP this year and additional 3% in 2023. This is by far the worst estimate for the current year among international institutions. But it will have to be revised to the downside.

EMPR

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