Rates Hikes Hit Russian Economy, U.S. Jabs

Posted on 09/18/2023

Russia now has 13% interest rates to handle inflation, but leaders in the country are making plans to profit from its primary business: oil. Russia is preparing to take the northern route to deliver oil internationally to markets such as Turkey, bypassing western interference. The route is also significantly shorter. However, Russia lacks enough icebreakers to manage the environment, and as a result is in talks with India and China to produce more. Once Russia has a fleet of icebreakers to allow the long, dangerous passage north, Russia will see a boost in oil sales and a reduction in transportation costs.

The U.S. is not pleased with this plan, and at the same time, wants to prevent Russia from gaining new weapons. Success is not guaranteed, as North Korea and Russia are in agreement that Russia may have some of its Soviet-era weapons returned for the fight in Ukraine. The U.S. not only wants Russia to lack weapons, but also, for economic pain to take hold. NDTV reported: “The United States blacklisted five Turkish companies as part of sweeping new sanctions aiming to hamstring the Russian economy over its war on Ukraine. Three Turkish firms were placed under sanctions for supplying Russian defense-related manufacturers, including UAV producers, with parts and technology equipment.”

Inflation is seen as a result of military spending, though inflation is also striking countries that have no involvement in Ukraine. Regardless, Russia’s President Vladimir Putin is determined, telling top officials in the country: “The government will provide whatever the army asks for.”

Get News, People, and Transactions, Delivered to Your Inbox