Sanctions pressure Russia – and other economies too

Russia’s war on Ukraine continues to disrupt global trade, particularly in key commodities, including oil, gas, wheat and grains. The Economist asks: Will the world cope without Russia’s commodities, and how? What will be the impact on global food markets? For a deeper dive into disrupted food supplies, listen to the latest Trade Talks podcast.

Multilateral organizations are taking action – or trying to. G7 economies issued a statement outlining the steps for inflicting economic pressure on Russia. WTO Members are considering punitive measures, including revoking Russia’s Most-Favored-Nation status and suspending Belarus’s accession process.

The key question: Will sanctions be effective? In terms of US trade, not very effective, notes Ed Gresser while examining tariffs on key Russian imports. Simon Evenett and Marc-Andreas Muendler also offer an analysis. Confused about the status of various sanctions? Check out this helpful sanctions timeline from Chad Bown of the Peterson Institute for International Economics.

Some countries are exploring workarounds. India is weighing options, reports the Financial Times. Asian tech firms, meanwhile, are grappling with sanctions compliance, according to Nikkei Asia.

Mentioned publications

Can the world cope without Russia’s huge commodity stash? – The Economist
War in Ukraine will cripple global food markets – The Economist
How Putin’s war could disrupt global food supplies – Trade Talks
G7 Leaders’ Statement – G7 Germany 2022
Joint Statement on Aggression by the Russian Federation Against Ukraine with the Support of Belarus – World Trade Organization
Trade Fact of the Week: America’s “non-MFN” tariffs on natural resources are usually low – The Progressive Policy Institute
Making Moscow Pay: How Much Extra Bite will G7 & EU Trade Sanctions Have? – St. Gallen Endowment & UC San Diego
Russia's war on Ukraine: A sanctions timeline – Peterson Institute for International Economics
India explores ‘rupee-rouble’ exchange scheme to beat Russia sanctions – Financial Times
From Samsung to Sony, Asia tech grapples with Russia sanctions – Nikkei Asia