“War… is as much a punishment to the punisher as to the sufferer.”Thomas Jefferson
I still remember the 2018 FIFA World cup held in Russia. All those grand splendor added more than $14 billion dollars to Russia’s economy wherein the major sponsors were top tier companies and enterprises from all around the world.
Fast forward 4 years later in 2022,The situation of Russian people looks bleak. FIFA and UEFA have banned Russian National teams and clubs from participating in any of heir footballing events.
But there are even more troubles for Russian citizens now.
The Cost Of War
It is estimated that Russia incurred a cost of $7 billion for the first 100 hours of war against Ukraine. Moreover as the war moves on to the next day, It is estimated that the expenses for Russia will go up to $20 billion a day!
The Closing Airspace
More than 30 countries have closed their airspace for Russian airplanes, leaving the Russian tourists stranded with no way to go home. The biggest Airplane manufacturers like Airbus and Boeing have halted the supply of aircraft parts to Russian airlines.
According to experts the global car production would be at least a million units less and this crisis would worsen rising inflation and propel already record-high vehicle prices even higher.
Luxurious car companies like BMW, Audi, Jaguar and other prominent car manufactures like Honda and Toyota have suspended their operations in Russia over Ukraine crisis. They also have stopped the importing of their cars.
Entertainment companies such as Netflix have released a statement stating that new member subscriptions have been stopped in Russia. Tik Tok has also banned Russians from posting any contents in the platform.
Smartphone manufactures such as Samsung and Apple has stopped the sale of their devices throughout Russia.
The Financial Block
VISA and Mastercard have stopped their services in Russia. At present 74 percent of all payment transactions in Russia are through VISA and Mastercard
In simple words sanctions are penalties imposed on a nation by a group of nations done with an aim to financially weaken a country. Financial sanctions can range from seizing of assets to freezing the foreign exchange reserves.
Overall, the US bank expects the economic impact of sanctions on Russia’s economy to be on par with the financial weakening the country experienced during the financial crisis in 2008 or the Covid-19 pandemic.
Ruble turning into ‘Rubbles’
|Year||1 USD ($)||1 Russian Ruble (₽)|
|2022 (before the war)||1||75.6|
The Economic sanctions by the USA and European countries have made the Russian ruble to deteriorate value so fast, that within a span of a month the ruble has doubled its loss of value.
As the famous quote which goes on like “The more money you spend on guns, the less money you spend on people! More weapons, less happiness; more guns, more misery!”
The only thing the war has produced is the degrowth of the financial system in Russia. This all is done with the aim to make Vladimir Putin stop this war for good. Will he?
Only time will tell.