Since the invasion of Ukraine, Russia has faced profound geopolitical and economic changes. The EU, US, UK, and G7 have imposed complex sanctions to weaken Russia's economy by restricting access to international markets, financial systems, and technology. However, countries like India and China have not supported these sanctions and have become key markets for Russia instead. This shift has allowed Russia to mitigate the impact of Western sanctions by focusing on Asian markets, significantly influencing global commodity markets, and showcasing Russia's resilience and adaptability.
Economically, Russia has performed remarkably well despite the ongoing conflict and the sanctions imposed by Western nations. Alasdair Macleod highlights that one of the central challenges for the Russian economy has been maintaining the ruble's value. The Central Bank of Russia has responded to this challenge by setting high interest rates, around 16%, to prevent the ruble from depreciating. This high interest rate reflects a lack of confidence in the ruble rather than fundamental economic weaknesses.
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Credit: Kinesis Money
How ESG could break markets and push silver prices up! Feat. Alasdair Macleod - LFTV Ep 178
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