April 19, 2024
US And The Sanctions on Russia

It’s been the 19th day of the Russia-Ukraine war. It seems that the countries are still far from ending this conflict as they are not looking at diplomatic progress any time soon.

Aggressive sanctions on Russia

During this period, we have seen how country after country, society after society, boycott Russia in a horizontal and sharp way with aggressive sanctions that hit not only the Russian economy but also the global economy.

The pressure on the markets is enormous, both considering rising prices for commodities, metals, food, and energy – and in light of the money freezes and sanctions that threaten to sweep the global economy into a crisis that has not been seen for many years.

Vladimir Putin announced that Russia would stop the supply of commodities export and would ban the export of over 200 goods. This announcement came as a result of the ban the US on the Russian energy supply and the European Union to reduce the Russian Gas import.

Russia is the largest exporter of wheat, a major exporter of corn, coal, gas, and oil, and one of the top producers of raw materials such as palladium, platinum, iron, silver, steel, aluminum, and nickel.

Russia returns to Gold standard

On March 3rd, President Putin Returns the Gold Standard to Russia. This can make the Ruble become the most stable coin in the world since the meaning of this act is to back up the Ruble with gold.

In 1971, US President Nixon banned this rule of backing up the US dollar with gold. That led to an unstable economy till today while the US is in $30 TRILLION in debt and the rest of the western countries are in enormous debt to the United States as well.

Russia’s decision for backing up the ruble with gold is the best move Russia could have done.

The use of Digital Currencies

We can clearly see the significance of the freedom that Bitcoin has. Apparently, the Ukrainian government has raised funds for the war effort through bitcoin, Ethereum, and other currencies through tweets on Twitter.

Bitcoin and Russian currency Ruble

Photos and videos of long queues at ATMs are posted on social media and indicate a lack of trust in the system considering the threats to disconnect Russia from SWIFT. This, along with the strict transfer of banking and ATM withdrawals by the Russian and Ukrainian governments to prevent the country from illustrating the need for digital currencies as an escape route from the system.

The Russian government may use digital currencies after the US and Europe announced they would cut them off from the global payment system. Ukrainians who feared this also began monitoring the wallets of Russian politicians’ problems. It’s a privacy issue: the West and Ukraine know that Russia may be looking for an alternative to crypto and are already using all their resources to try to monitor activity – thus showing the need to maintain anonymity in the field.

Apparently, countries that have imposed the sanctions are trying to get crypto exchanges to block Russian users or at least the accounts of senior officials who have been faced with sanctions.